Original Source Date: August 1, 2005
Impact Highlights
| Annual ROI | Time Horizon | Confidence |
|---|---|---|
| 2.2% | 20.0 years | 4 - Weak |
| Activities | Outcomes | Indicators |
|---|---|---|
| Housing / Shelter | Shelter | Vacancy Rate |
| Geography | Demographics |
|---|---|
| Mideast, Pennsylvania, United States | All |
Article Details
Vacant and abandoned properties are burning a hole in the pockets of local governments, businesses, and individuals. The root of the problem may seem far beyond the control of local governments. The vacancies are often a result of larger forces, such as corporate decisions to transfer jobs overseas, or developers’ decisions to invest in sprawling new homes far on the urban fringe. But taking no action simply allows the problem to grow worse.
The places that have done the most to end the financial drain of vacant properties are those that recognize their value. The Pennsylvania Horticultural Society provides an idea of the positive returns cities can expect by investing in a comprehensive program for dealing with vacant and abandoned property. PHS estimates that, over the course of twenty years, the City of Philadelphia would receive $1.54 in benefits for every $1.00 in costs ($158.7 million in benefits, $106.7 million investment). This figure stands before even considering the additional benefits that may “accrue to families and private businesses if the elimination of vacant land results in an increase in the value of their property, a decrease in insurance rates, or a greater interest by businesses to locate in a more attractive city.”
Many cities and counties across the country are looking for strategies that help them capture the value reported by the programs discussed in this report. While some communities have yet to take the first step, others are enacting their own programs to different degrees of success. Sharing experiences and knowledge – what works and what does not – is the role of the National Vacant Properties Campaign, providing a forum to arm communities, civic leaders, and policymakers with information that can embolden them to take action. The Campaign hopes to encourage communities and researchers to seek solutions to these and other outstanding problems relating to the scope and cost of vacant properties:
- Many communities don’t have a reliable accounting system to track of the number of vacant properties that exist within their borders.
- Many of the financial costs incurred by a jurisdiction, including demolition, fire and nuisance abatement, are not routinely tracked.
- While anecdotal evidence abounds regarding homeowners losing their insurance because of their proximity to an abandoned house, determining the actual cost is difficult.
- Much of the data available about the costs of vacant properties is found from a variety of sources and is difficult to obtain.
Read Full Story