We explore several different explanations of the effect of foreclosures on neighboring properties using a dataset of transactions in Boston, for which we have rich data on the size and location of condominium associations. There is compelling evidence against a supply effect—nearby condo...

Studies of foreclosure externalities have overwhelmingly focused on the impact of forced sales on the value of nearby properties, typically finding modest evidence of foreclosure spillovers. However, many quality-of-life issues posed by foreclosures may not be reflected in nearby sale prices....

This paper assesses the impact of the mortgage crisis on Chelsea, Massachusetts, a low-and-moderate-income community of 35,000 adjacent to Boston. After years of rapid growth, house prices started falling in 2005. According to our repeat-sales indices, by the end of 2009 prices had fallen by as...

In housing policy, one size does not fit all. State programs designed to retain affordable housing stock in high-cost areas may inadvertently keep secondary cities from revitalizing.

Helping families of low and moderate means find opportunities in high-cost areas requires special tactics. Citizens for Affordable Housing in Newton Development Organization (CAN-DO) shows it can be done.

Federal, state and local wetlands protection laws that restrict landowners' ability to develop their properties in certain ways could decrease the value of the affected properties. However, the regulations could also give benefits to nearby neighbors, who no longer need to worry about increased...

This paper provides the first rigorous assessment of the homeownership experiences of subprime borrowers. We consider homeowners who used subprime mortgages to buy their homes, and estimate how often these borrowers end up in foreclosure. In order to evaluate these issues, we analyze...

In April 2007, the Massachusetts Division of Banks reported on the recommendations of its mortgage summit. The summit brought together a wide range of stakeholders to develop concrete responses to the problem of rising foreclosures. This article describes the collaborative process used in the...

The unprecedented accumulation of foreclosed properties in recent years has presented a challenge to communities, banks, and policymakers. This article outlines a potential disposition framework for government-sponsored and private enterprises to identify which foreclosed properties would be...

Presented by Eric S. Rosengren, President and Chief Executive Officer, Federal Reserve Bank of Boston, at the Citizens’ Housing and Planning Association (CHAPA) 41st Annual Dinner and Meeting, Boston Convention and Exhibition Center, October 16, 2008