Carl H. Lindner College of BusinessCarl H. Lindner College of BusinessUniversity of Cincinnati

Carl H. Lindner College of Business

THE OXFORD PRESS: Local Vacant Home Rates Higher than State Average

Source:
Oxford Press
Published:
Monday, December 19, 2016 6:29 PM
Research assistant professor for the Economics Center and associate professor of sociology at the University of Cincinnati discusses how local home vacancies can affect surrounding home values.

Benjamin Passty, research assistant professor for the Economics Center and Jeffrey Timberlake, associate professor of sociology at the University of Cincinnati, says homes that are standing empty lower the price of surrounding homes.

According to Passty, without a caretaker to look after the home, it can become an eyesore and damages the vibrancy of a neighborhood, which in turn makes it a less desirable place to live, which can make it harder to sell.

“If you live in a neighborhood with a lot of people, there is a feeling someone is watching over it, whereas if there is a sense of emptiness, a lot of other homes are more likely to become empty and are harder to fill,” Passty said.

“It creates a kind of symbolic malaise,” said Timberlake. “There’s a self-fulfilling expectation being created where people driving through may see a lot of empty houses and decide there must be a reason no one wants to live in that neighborhood so houses become harder to fill.”