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The Variance in Foreclosure Spillovers across Neighborhood Types

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  • Keith Ihlanfeldt
  • Tom Mayock

Abstract

The estimation of foreclosure spillover effects has been the subject of a number of studies following the most recent housing market crash. An important issue largely overlooked by these studies is the extent to which these spillovers vary across neighborhoods. In this article, we use data from the South Florida metropolitan area to study the variance in these foreclosure spillovers across neighborhoods with different income levels and racial concentrations. We find that the largest foreclosure spillovers occur in higher-income neighborhoods. In low-income, minority neighborhoods, we find no evidence of spillover effects. The results have important implications for local governments.

Suggested Citation

  • Keith Ihlanfeldt & Tom Mayock, 2016. "The Variance in Foreclosure Spillovers across Neighborhood Types," Public Finance Review, , vol. 44(1), pages 80-108, January.
    • Handle: RePEc:sae:pubfin:v:44:y:2016:i:1:p:80-108
    DOI: 10.1177/1091142114535835
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    References listed on IDEAS

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    1. William H. Rogers & William Winter, 2009. "The Impact of Foreclosures on Neighboring Housing Sales," Journal of Real Estate Research, American Real Estate Society, vol. 31(4), pages 455-480.
    2. W. Scott Frame, 2010. "Estimating the effect of mortgage foreclosures on nearby property values: a critical review of the literature," Economic Review, Federal Reserve Bank of Atlanta, vol. 95(3).
    3. Daniel Immergluck & Geoff Smith, 2005. "The impact of single-family mortgage foreclosures on neighborhood crime," Proceedings 955, Federal Reserve Bank of Chicago.
    4. Ellen, Ingrid Gould & Lacoe, Johanna & Sharygin, Claudia Ayanna, 2013. "Do foreclosures cause crime?," Journal of Urban Economics, Elsevier, vol. 74(C), pages 59-70.
    5. Bruce L. Benson & Paul R. Zimmerman (ed.), 2010. "Handbook on the Economics of Crime," Books, Edward Elgar Publishing, number 13180.
    6. Tammy Leonard & James Murdoch, 2009. "The neighborhood effects of foreclosure," Journal of Geographical Systems, Springer, vol. 11(4), pages 317-332, December.
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    Cited by:

    1. Oliver Lerbs & Markus Teske, 2016. "The House Price-Vacancy Curve," ERES eres2016_189, European Real Estate Society (ERES).
    2. Ihlanfeldt, Keith & Yang, Cynthia Fan, 2019. "The Impact of Rental Housing on Neighborhood Racial and Social Integration," MPRA Paper 93485, University Library of Munich, Germany.
    3. Keith Ihlanfeldt & Tom Mayock, 2019. "Affordable Housing and the Socioeconomic Integration of Elementary Schools," The Journal of Real Estate Finance and Economics, Springer, vol. 58(4), pages 567-595, May.
    4. Ihlanfeldt, Keith & Mayock, Tom, 2018. "School segregation and the foreclosure crisis," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 277-290.

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