Neighborhood Tipping and Sorting Dynamics in Real Estate: Evidence from the Virginia Sex Offender Registry

A cross-sectional exploration of household financial reactions and homebuyer awareness of registered sex offenders in a rural, suburban, and urban county.

“…Due to the stigmatizing nature of the sex offender label, it comes to no surprise that residents are unwilling to reside near RSOs given that depressed home sale values were associated with nearby RSOs (Bian et al, 2013;Caudill et al, 2014;Larsen et al, 2003;Linden & Rockoff, 2008;Navarro & Rabe-Hemp, 2017;Pope, 2008;Wentland et al, 2014;Yeh, 2015). At the same time, community members are grossly unaware of the presence of RSOs within their communities (Anderson & Sample, 2008;Burchfield, 2012;Craun, 2010;Kernsmith, Comartin, et al, 2009;Lieb & Nunlist, 2008;Phillips, 1998; see Beck & Travis, 2006).…”

“…Residents notified of a nearby RSO reported a substantially higher personal and altruistic fear of a sexual assault when compared to residents not informed (even though they resided in the same neighborhood). In fact, family homes have been associated with greater depressions in the selling prices of family homes (defined as a household with three bedrooms or more) than non-family homes (Bian et al, 2013;Wentland et al, 2014), which suggests an unwillingness of parents to reside nearby RSOs.…”

“…Undesirable features of a community such as criminal activities (Burnell, 1988;Congdon-Hohman, 2013;Ihlanfeldt & Mayock, 2010;Thaler, 1978;Troy & Grove, 2008;Yeh, 2015), sex offenses (Yeh, 2015), and nearby RSOs (Bian et al, 2013;Caudill et al, 2014;Larsen et al, 2003;Linden & Rockoff, 2008;Navarro & Rabe-Hemp, 2017;Pope, 2008;Wentland et al, 2014;Yeh, 2015) have been associated with reductions in property values. Even more concerning is that depressed home sale values as a consequence of crime and RSOs' presence resulted in decreased overall revenue of the vicinity as a whole (Burnell, 1988;Congdon-Hohman, 2013;Linden & Rockoff, 2008).…”

“…For instance, the presence of RSOs potentially resulted in a $60 million financial loss on home sale values in Mecklenburg County, North Carolina (Linden & Rockoff, 2008 (Bian et al, 2013;Caudill et al, 2014;Larsen et al, 2003;Linden & Rockoff, 2008;Navarro & Rabe-Hemp, 2017;Pope, 2008;Wentland et al, 2014;Yeh, 2015).…”

“…Real estate markets in various jurisdictions have been compromised in the form of depressed home selling prices as a consequence of the presence of RSOs (Bian, Brastow, Waller, Stoll, & Wentland, 2013;Caudill, Affuso, & Yang, 2014;Larsen, Lowrey, & Coleman, 2003;Linden & Rockoff, 2008;Navarro & Rabe-Hemp, 2017;Pope, 2008;Wentland, Waller, & Brastow, 2014;Yeh, 2015)-referred to as the RSOhome sale value research in the present study. However, existent within each of these publications are methodological issues that were not assessed.…”