There are studies that measure the impacts of negative circumstances occurring in a community or neighborhood One of the greatest impacts on the increasing number of vacant and abandoned residential structures is foreclosures. Many studies have evaluated the neighborhood impact of foreclosures and it is not surprising that this research has shown that foreclosures can have a significant negative impact on nearby property values.
Once a structure becomes vacant, it can have a negative impact throughout the neighborhood. Without either an owner or tenant in the property it may become blighted as the yard becomes overrun; trash may accumulate on the property from around the neighborhood; vandals may destroy windows that don’t get repaired; and the property may become occupied by squatters and serve as a magnet for crime. Ultimately, the situation comes up that neighbors would rather leave the community than live around blight. Problems like these effect neighborhood quality and decrease property values.