Does neighborhood crime affect local housing rental prices? What effect does violent crime have on the desirability of the community?
Pricenomics compared the crime statistics data from major U.S. cities to rent prices and found that increasing violent crime negatively affected rent prices. This means that the more crime in the area the lower the rent prices.
It is interesting to note that the cities with the highest number of crimes were not the same as those cities with the highest amount of crime per population.
Crime in Major Cities (1/16-6/16)
1. New York 83,471
2. Los Angeles 62,151
3. Houston 60,151
4. Chicago 52,880
5. Dallas 42,957
But when comparing city crime in a per capita basis the list changes:
Crime Per Capita in Major Cities
These higher crime cities have lower rent prices.
New York has the highest rent prices and the least crime per capita. Atlanta and Houston have much lower rent prices but more crime per capita.