zerohedge.com / By Priceonomics / Jul 6, 2017
While historically, crime rates across the country have been dropping since the 1990’s, in the past two years, violent crime has been on the rise. These recent spikes, while far from the crisis of America’s past crime wave, highlight how sensitive communities are to changes in neighborhood safety.
Neighborhood safety is closely connected with the number of businesses, access to public spaces, and housing and rental prices. While it’s generally understood that rent and crime are connected, but how much do crime rates impact rent prices?
We analyzed rental listings data from Priceonomics customer RentHop to investigate this question. US. By combining that data with crime statistics from law enforcement sources, we can help uncover the relationship between crime and rent.
Our analysis confirmed the initial assumption that crime was negatively correlated with rent prices (meaning the higher the crime the lower the prices and vise versa). It also showed us that the full answer is more nuanced. Certain crimes matter more than others, with property crimes the most negatively correlated when looking at major US cities. However, New York City, where we’ve done some more detailed analysis, violent crime was most negatively correlated with rent, while property crime (e.g. burglary or motor vehicle theft) was less so.