The U.S. mortgage crisis beginning in 2007 resulted in very high levels of foreclosures in many neighborhoods around the country. In addition to harming individual households, foreclosures had negative spillover effects on nearby properties and households, including lower property values and higher crime rates. To understand the effects of foreclosures on households and neighborhoods, it is important first to understand the demographic and geographic distributions of foreclosures and how they may have changed during the foreclosure crisis, which persisted for more than five years, from 2007 to beyond 2012. Spurred in part by the crisis, dozens of studies have been published on the effects of foreclosures on neighborhoods; somewhat fewer studies have systematically examined the intrametropolitan morphology of the crisis, including how this morphology varied across metropolitan areas and over time. This chapter first reviews the geographic incidence and concentrations of foreclosures, and then reviews evidence of the impacts of foreclosures on households and neighborhoods.
Immergluck, D. (2015). Foreclosures and neighborhoods: The shape and impacts of the U.S. mortgage crisis. In McCarthy, G. and Moody, S., Land and the city. Cambridge, MA: Lincoln Institute.