There Goes the Neighborhood: The Effect of Single-Family Mortgage Foreclosures on Property Values

Daniel Immergluck and Geoff Smith

This report shows that foreclosures have a significant negative effect on neighborhood property values. Although foreclosures have long been considered a problem associated with FHA loan programs, recent research has shown that the explosion in foreclosures that began in the 1990s was primarily driven by the growth of high-risk, conventional subprime lending.