How Crime Relates to Investment and Disinvestment in Residential Properties: A Baltimore City Case Study

Urban communities suffer from a spiral of decay where poor conditions—structural and social— induce crime, and crime worsens those conditions. Policies attempt to aid these blighted areas through crime prevention; however, the literature overlooks how residents, municipalities, and communities invest and disinvest in homes and neighborhoods in relation to surrounding crime. This study uses panel data on crime and housing indicators from the Baltimore Police Department and the Baltimore Department of Housing and Community Development to model the relationship between crime and residential investment in communities within Baltimore City, Maryland, from 2015 to 2021. Contrary to the expected narrative, the study finds a significant increase in rehabilitation projects within higher crime areas, suggesting unexpected patterns of investment. However, these areas also see fewer demolitions and maintain a higher proportion of unoccupied homes, suggesting that investment and disinvestment can coexist. Thus, Baltimore may consider supplemental housing investment in high crime areas.