Communities Reeling from Foreclosure Crisis

America's foreclosure crisis is taking a heavy toll on communities by diminishing tax bases, lowering school enrollments, and contributing to rising crime.

1 minute read

January 19, 2009, 7:00 AM PST

By Michael Dudley


"Foreclosures are not only affecting the people who are losing their homes. They are changing entire communities. With fewer homeowners, local businesses and schools are seeing fewer customers and students. City governments are not receiving revenue, and abandoned houses are becoming sites for criminal activities.

Local governments are finding themselves in a vicious cycle: the more they lose revenue due to foreclosures, the more crime increases, which requires cities to provide more services, which they can't because of the dent in revenues from foreclosures.

[D]ozens of complaints [come] every week from residents in West Phoenix about abandoned houses. For Sale signs and overgrown lawns have made vacant homes more attractive to copper thieves and even human smugglers, who use these properties as stash houses."

Thursday, January 15, 2009 in Color Lines

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

"Units for sale - contact your local realtor" sign in front of homes.

‘Displaced By Design:’ Report Spotlights Gentrification in Black Neighborhoods

A new report finds that roughly 15 percent of U.S. neighborhoods have been impacted by housing cost increases and displacement.

May 19 - Next City

Turquoise blue Pyramid Lake near Reno, Nevada.

Nevada and Utah Groups Oppose Public Land Sell-Off Plan

A set of last-minute amendments to the budget reconciliation bill open up over half a million acres of federally managed land to sales.

May 19 - Inside Climate News

Alpine Recreation Center sign in park in Chinatown, Los Angeles, CA.

More Than a Park: A Safe Haven for Generations in LA’s Chinatown

Alpine Recreation Center serves as a vital cultural and community hub in Los Angeles' Chinatown, offering a safe, welcoming space for generations of Chinese American residents to gather, connect, and thrive amidst rapid urban change.

May 19 - American Community Media

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.