The Impact of Crime Statistics on Neighborhood Safety and Property Values

Ask any potential home buyer what they consider most important in a neighborhood, and more times than not, you’re going to hear “low crime rate.”

A home’s proximity to a crime hotspot can be a deal breaker for many homebuyers. And it doesn’t just affect the neighborhood’s safety but property prices too. A 2019 study published on the Nordic Journey of Criminology found that house prices drop by 1.5% for every 1% increase in crime. So, how can neighborhoods reduce the crime rate?

Surveillance systems have, among other things, been shown to reduce crime significantly, but only in certain contexts. In this post, we’ll discuss the impact of crime on neighborhood safety and explore some measures you can take to reduce crime. 

How Does Crime Affect Property Value?

Crime can be catastrophic, and while it costs Americans approximately $3,000 annually to fund fighting crime, violence also impacts property prices in many ways. We’ll look at this from two perspectives:

  • Buyer concerns

  • Insurance rates

Buyer Concerns

Since buying a home is a significant investment, people want to make a good decision. 

That said, buyers avoid unsafe areas, preferring to move to neighborhoods with the lowest criminal activities. Churchill, a UK-based insurance firm, found that 69% of buyers worry about buying property in a high-crime area. 

If these potential buyers find a dream home in a crime hotspot, they will likely move elsewhere, even if the property fulfills all their wants. 

Given these concerns, high crime drives down demand, lowering the price. Note that different crimes affect demand differently. Violent crimes, like murder and burglary, are more likely to chase potential buyers away than petty crimes like shoplifting. 

Insurance Rates

The crime rate is one of the critical factors insurance companies consider when calculating home insurance rates. If a particular location has a higher crime rate, the insurer will assume the likelihood of a claim being made is higher and will charge higher rates to offset the risk. 

This, however, negatively impacts the buyer’s perception of the property. Paying more for insurance scares many buyers away, driving down the demand. And when the demand for property in a given area is low, the price also decreases. 

How to Improve Neighborhood Safety

Neighborhood safety is a team effort and should start with you. So, what can you do to make your neighborhood a safe place? Here are some tips. 

1. Report Crime as Soon as Possible

Whether it’s petty vandalism or a serious break-in, police cannot act without hearing from you or anyone else about the incident.

Calling can’t guarantee that the authority will fix the problem, but it makes everyone know how responsible the community is and instill fear that any crime will be reported immediately. Don’t assume that someone has already called. Take the initiative to make the call yourself.

2. Establish a Community Watch

Consider establishing a community watch within your neighborhood. A community watch consists of volunteers who conduct routine checks within the locality. These individuals look for suspicious activities, and even people, within the neighborhood and report if something is off. 

3. Improve Lighting

Most of the criminal activities in neighborhoods happen at night, particularly in areas with poor lighting. Make sure there’s ample lighting on the sidewalks as well as the streets. 

It’s also important to provide lighting in the property dead spots, as these are often the areas where criminals hide. 

4. Install Surveillance Systems

Community surveillance can improve public safety, protect property, and help deter and catch criminals. When used with ethics in mind, these systems can help reduce neighborhood crime and boost accountability. 

Safest Neighborhoods in Middle Tennessee

Most of Tennessee is safe, with few areas that have high crime rates. 

Since Tennessee comes above the US average rate for both violent and property crime, it’s important to consider the neighborhoods that are safe to live in. Middle Tennessee is considered a great and safe place to live. Here are the safest cities to move to in middle Tennessee: 

  • Brentwood

  • Franklin

  • Nolensville

  • La Vergne

  • Eagleville

  • Murfreesboro

  • Belle Meade

  • Green Hills (Nashville Neighborhood)

Invest in Home Security with NCA Alarms

Ready to take the next steps in keeping your neighborhood safe? Let us help you get started! 

At NCA, we’ve been serving the middle Tennessee area with quality surveillance systems since 1997. As a leading supplier of security solutions, we’re committed to offering top-grade alarm monitoring systems at the best prices possible. 

To learn more about NCA Alarms and how we can protect your neighborhood, contact us today at (615) 777-7622 or fill out this form for a free quote.

Horton Admin