City of San Diego homeowners will have lost $19.2 billion in wealth between 2008 and 2012 (estimated), according to a study by Corinne Wilson of the Center on Policy Initiatives, released today (June 23). Using zip code data from RealtyTrac, and drawing estimates for city boundaries, Wilson estimated that the city will have lost $117 million in property taxes during that 2008-2012 period.
Making estimates from U.S. Census and Chicago studies, she says that homes in foreclosure lose 22% of their value and homes within 1/8 of a mile of a foreclosure also lose value. One foreclosure can cost local governments $5000 to $34,000 in maintenance, inspection fees, public safety calls, and other services, she says.
A Barrio Logan resident said today that foreclosed houses on her street create a fire hazard, are infested with rats and roaches, and are sometimes vandalized or used for prostitution or drug abuse.