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Think about it. If your city had a gang move into one of it's neighborhoods, normal people would move out for safety. Those people would form an exclusive neighborhood, and to keep the hoodlums out they would pay higher prices for housing. If you rid the whole city of crime, the cost stays low. Maybe I'm getting this wrong?
No, this is correct and nothing new. Crime drives up housing costs in other areas without crime. Imagine what would happen to home prices if overnight, crime went away, would drop like a rock.
Miami and the DC area are great examples of this (I live in Miami). There are some ghetto areas in what is actually great locations for living. If crime went away from these places, high cost areas like Brickell would drop in price, and the ghetto areas would rise.
The DC area, prices are generally dictated by metro access, with some shady areas near metro stations. If these places all of a sudden became great, you would see a drop in price in other areas.
Housing prices are driven a lot by crime. Masses amount of people trying to get into smaller, crime free areas really drives up the costs of these areas.
Those who cannot escape and end up living in crime filled areas, generally end up impacted in many ways ranging from just general conveniences like having a store within walking distance, lack of exercise because running down the street is not a great idea, potentially having kids fall influence to criminals minds, etc. It keeps the crime feeder pool going.
Think about it. If your city had a gang move into one of it's neighborhoods, normal people would move out for safety. Those people would form an exclusive neighborhood, and to keep the hoodlums out they would pay higher prices for housing. If you rid the whole city of crime, the cost stays low. Maybe I'm getting this wrong?
Normal people might not be able to afford to move out.
Getting rid of crime is not cheap.
Think about it. If your city had a gang move into one of it's neighborhoods, normal people would move out for safety. Those people would form an exclusive neighborhood, and to keep the hoodlums out they would pay higher prices for housing. If you rid the whole city of crime, the cost stays low. Maybe I'm getting this wrong?
Cheap is quite different than safe. As a area crime rises the rent and buy gets cheaper normally. But if you wait you will lose value in any real assets there. Normally as crime increases and higher income moves out police protection is less affordable not more just like schools in most areas.There is a reason most cheap areas have higher crime rates.
Get rid of crime in an otherwise desirable neighborhood and prices go up, not down. They might go down somewhere else... but that somewhere else might not be nearby.
Get rid of crime in an otherwise desirable neighborhood and prices go up, not down. They might go down somewhere else... but that somewhere else might not be nearby.
Prices will go up in the former undesirable area, and prices will decrease in the current desirable area. Having a larger supply of desirable housing will bring overall prices down. Right now in many places, people are shoehorned into the few desirable areas there are and can afford. Some places have huge areas that are basically ghettos, and would be a very desirable location if not for the crime (Miami is like this for example).
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