Research shows that blighted properties—which are vacant, abandoned, or deteriorated—have a significant financial and societal impact on their neighborhoods if left unremedied. Mark Adams, president of California Receivership Group—which utilizes health and safety receivership to remediate nuisance conditions at slum properties, abandoned properties, and various other types of blighted properties—discusses how distressed properties can negatively impact surrounding property values, strain public resources, attract crime, and discourage community investment.
Lower Property Values
Blighted properties have a negative impact on the values of surrounding properties. According to a report by The New York Times, homes adjacent to dilapidated properties can experience a depreciation of 5% to 10%. Another study by the Urban Institute shows that some areas see decreases of up to 30% in their property values due to blighted properties. The negative perception associated with blight deters buyers and investors, explains Adams.
The Impact on Crime from Abandoned Properties
Additionally, studies show that crime, including assaults and gun-related violence, tends to increase in neighborhoods where buildings have been abandoned and vacant. Mark Adams of the California Receivership Group found that remediating code violations and nuisance conditions at a southern California hotel reduced crime on its block by 55%. Moreover, a 2016 study by researchers at the University of Pennsylvania found that there was a 39% reduction in gun violence from addressing abandoned buildings and vacant lots.
Public Safety, Mental Health at Risk
Blight properties are associated with vandalism, squatting, arson, and illegal dumping, says Receiver Mark Adams. There is a decline in neighborhood pride and local engagement. Mental health is also impacted due to stress, fear, and visual decay. The American Journal of Public Health, in a 2015 study, found that “remediating neighborhood blight may reduce stress and improve health.” Walking past nuisance properties triggered stress responses in the study’s participants. When this response is repeatedly activated over time, it can contribute to the development of chronic health conditions.
Less Revenue for Municipalities, Higher Costs to Address
Vacant and abandoned properties can also significantly impact the finances of local municipalities, which depend on property taxes as their primary revenue source. Research shows that abandoned buildings lower the taxable value of surrounding properties. This decline can trigger a ripple effect, leading to increased mortgage defaults, tax foreclosures, and further devaluation, ultimately resulting in serious revenue shortfalls for local governments.
In addition, neglected and deteriorating properties often lead to higher expenses for local governments, which must dedicate more time and resources to address service calls in the area, explains Receiver Mark Adams. In some cases, agencies may take on the responsibility of maintaining these private properties, diverting funds away from essential community programs.
Strategic Intervention for Transforming Nuisance Properties
Mark Adams, president of California Receivership Group, transforms blighted properties through court-appointed receiverships under California’s Health and Safety Code, an approach used when traditional enforcement fails. The property funds its repairs, avoiding taxpayer costs. Adams addresses severe health and safety issues, including structural failures, hazardous materials, and unsecured, crime-ridden buildings. His work restores safety, livability, and property value to neglected sites that would otherwise harm surrounding communities.
Disclaimer: This article is intended for informational purposes only and does not constitute legal, financial, or regulatory advice. The statements made by Mark Adams and references to California Receivership Group reflect their experience and professional perspective and are not endorsements, guarantees, or representations of specific outcomes. Case examples and cited statistics are based on publicly available data and should not be interpreted as universally applicable results. Readers are encouraged to consult with qualified professionals for guidance related to property remediation, code enforcement, or municipal procedures.
