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Foreclosures and Metropolitan Spatial Structure: Establishing the Connection

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  • Selma Hepp

Abstract

This article explores the link between foreclosures and costs of commuting. For metropolitan spatial form, the important question on spatial location of foreclosures is whether their concentration in suburbia stems from higher risk lending during the subprime boom alone or whether costs of commuting added additional risk because of their stress on household budgets. The analysis attempts to single out the impact of proximity to the central business districts and transit and employment accessibility in accumulation of distressed properties in Maryland, and the Washington and Baltimore metropolitan areas separately. The analysis shows that even after accounting for subprime lending and employment, distance to the central business district impacted levels of distressed properties, particularly in the Washington region. There were more foreclosures farther from the urban core and in areas with relatively lesser access to employment.

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  • Selma Hepp, 2013. "Foreclosures and Metropolitan Spatial Structure: Establishing the Connection," Housing Policy Debate, Taylor & Francis Journals, vol. 23(3), pages 497-520, July.
    • Handle: RePEc:taf:houspd:v:23:y:2013:i:3:p:497-520
    DOI: 10.1080/10511482.2013.771787
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    References listed on IDEAS

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    1. Kristopher Gerardi & Adam Hale Shapiro & Paul S. Willen, 2007. "Subprime outcomes: risky mortgages, homeownership experiences, and foreclosures," Working Papers 07-15, Federal Reserve Bank of Boston.
    2. Ebiere Okah & James A. Orr, 2010. "Subprime mortgage lending in New York City: prevalence and performance," Staff Reports 432, Federal Reserve Bank of New York.
    3. Mark Doms & Frederick T. Furlong & John Krainer, 2007. "Subprime mortgage delinquency rates," Working Paper Series 2007-33, Federal Reserve Bank of San Francisco.
    4. Chan, Sewin & Gedal, Michael & Been, Vicki & Haughwout, Andrew, 2013. "The role of neighborhood characteristics in mortgage default risk: Evidence from New York City," Journal of Housing Economics, Elsevier, vol. 22(2), pages 100-118.
    5. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, March.
    6. Daniel Immergluck, 2009. "Intrametropolitan patterns of foreclosed homes: ZIP-code-level distributions of real-estate-owned (REO) properties during the U.S. mortgage crisis," FRB Atlanta Community and Economic Development Discussion Paper 2009-01, Federal Reserve Bank of Atlanta.
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    Cited by:

    1. Niu, Yi & Ding, Chengri, 2015. "Unemployment matters: Improved measures of labor market distress in mortgage default analysis," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 27-38.
    2. Nielsen, Thomas Alexander Sick, 2015. "Changes in transport behavior during the financial crisis. An analysis of urban form, location and transport behavior in the greater Copenhagen area 2006–2011," Research in Transportation Economics, Elsevier, vol. 51(C), pages 10-19.
    3. Kyungsoon Wang, 2019. "Housing market resilience: Neighbourhood and metropolitan factors explaining resilience before and after the US housing crisis," Urban Studies, Urban Studies Journal Limited, vol. 56(13), pages 2688-2708, October.

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