Crime reduction is the key to boosting home prices

Crime rate reduction is the secret to boosting home values, according to a new study conducted by Center of American Progress. The study shows communities that manage to reduce violent crimes by 10 percent could see potentially billions of dollars in the appreciation of home price or about 0.8 percent in home prices.

Researchers found the significant impact of crime rate reduction in a particular area. According to them, a minimal reduction in violent crimes can results in an increase of home values in the next year. For example, the home values in one city can move up by up to 1.5 percent for the next year if at least 1 crime of homicide was reduced in the prior year. In addition they also found out that 2.1 percent increase in home prices happen to those areas manage to reduce homicides by 25 percent.

Finally, the study reveal that crime reduction not only help boosting home values but could also drastically expand a community's revenues from property taxes.

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