Uncovering the True Cost of Unsecured Vacant and Abandoned Properties

Vacant and abandoned properties are more than just eyesores—they are ticking time bombs for neighborhoods, local governments, and homeowners. The true cost of these properties goes far beyond lost curb appeal, draining millions from city budgets, slashing property values, and putting public health and safety at risk. 

Vacant, abandoned, and deteriorated (VAD) properties include residential, commercial, and industrial buildings, that have been left unoccupied, unsecured and neglected. These properties, if not properly secured often become public nuisances, attracting crime, dumping, and posing serious safety and health hazards. They’re not just a symptom of economic decline—they actively drive it, creating a vicious cycle that drags down entire neighborhoods(1).

The Economic Fallout

VAD-related costs pose significant challenges to local communities, adversely affecting property values, tax revenues, and public costs:

Plummeting Property Values:

The presence of even a single vacant or abandoned property can drag down the value of surrounding homes. In Cleveland, Ohio, properties within 500 feet of a vacant, tax-delinquent, and foreclosed property lost an average of 9.4% of their value (2). In Philadelphia, VAD reduced the value of city homes by an average of $8,000, costing the city $20 million in annual maintenance and $2 million in lost tax revenues (3).

The domino effect is real: as property values fall, homeowners lose equity, and the tax base shrinks, forcing local governments to cut essential services or raise taxes on remaining residents.

Lost Tax Revenue: 

Property taxes are the lifeblood of local governments, funding everything from schools to emergency services. When vacant properties proliferate, the taxable value of neighborhoods nosedives. In Atlanta, Georgia, the total cost of distressed vacant properties ranged from $55 million to $153 million in lost property values, translating into $1 million to $2.7 million in lost property tax revenue every year (2).

Skyrocketing Public Costs:

Local governments are left holding the bag for the costs of managing vacant and abandoned properties. These costs include:

• Boarding and securing buildings
• Demolishing unsafe structures
• Mowing overgrown lots
• Removing trash and debris
• Increased police and fire department responses

For example, the City of Toledo, Ohio, spent $3.8 million in a single year on services related to VAD properties, including $1 million on code enforcement, $800,000 on nuisance abatement, $600,000 on police dispatch, and $1.4 million on fire dispatch (2).

Here are other sources you might find interesting:

• DAWGS Vacant Property Security Protects Neighborhoods, Promotes Economic Development, and Mitigates Liability for Commercial and Residential Property Owners
• Guidebook: Municipalities and Vacant Properties
• Municipalities

Public Health and Safety Risks

VAD pose significant threats to both public health and community well-being. These neglected spaces, when left unsecured, not only attract criminal activity but also harbor health hazards that can impact residents’ physical and mental health:

Health Hazards:

Vacant and abandoned properties are breeding grounds for mold, lead, asbestos, and other toxins. These hazards can lead to asthma, cardiovascular disease, developmental issues in children, and even premature death. 

Mental Health Toll:

The psychological impact is just as severe. The visual eyesore of boarded-up homes, trash-strewn lots, and overgrown weeds increases stress, depression, and feelings of hopelessness among residents. 

Crime Magnet:

Unsecured vacant properties are proven magnets for crime. A study in Austin, Texas, found that blocks with unsecured vacant buildings had 3.2 times as many drug calls, 1.8 times as many theft calls, and twice as many violent calls as blocks without vacant buildings (2). In Flint, Michigan, seven out of ten fires occur in abandoned houses, putting additional strain on already stretched fire departments (3).

When One Property Fails, the Whole Block Feels It

The impact of VAD doesn’t stop at the property line. They set off a chain reaction:

• Lower property values lead to more foreclosures and vacancies.
• Reduced tax revenues force cuts to public services, making neighborhoods less attractive.
• Increased crime and health hazards drive away residents and potential investors.
• The cycle accelerates, leaving entire communities in the grip of decline (1).

Who Pays the Price?

• Homeowners: Lose equity, face higher insurance premiums, and risk policy cancellations due to increased neighborhood instability.
• Local Governments: Spend millions annually on maintenance, code enforcement, public safety, and legal actions, while collecting less in taxes.
• Communities: Suffer from reduced public services, higher crime, and deteriorating quality of life.

The Cost of Inaction

Ignoring vacant and abandoned properties is not a cost-saving measure—it’s a recipe for escalating losses. Every year of inaction compounds the economic, social, and health costs. Investing in solutions—like steel security door and window guards, land banking, code enforcement, and property rehabilitation—not only saves money in the long run but also revitalizes neighborhoods and restores hope.

Real Numbers, Real Impact: here’s a summary table of the data obtained by the National Vacant Properties Campaign (part of the Center for Community Progress) (2):

City	Annual Cost of VAD Properties	Lost Property Value	Lost Tax Revenue
Atlanta, GA	$55M–$153M	$55M–$153M	$1M–$2.7M
Toledo, OH	$3.8M	N/A	N/A
Philadelphia, PA	$20M (maintenance)	N/A	$2M
8 Ohio Cities	$15M (direct)	$49M (tax base)	N/A

 

As Mallach notes, strategies that address vacant properties at the neighborhood level—not just individual lots—are far more effective at reversing decline and stabilizing communities (5).

What Can Local Leaders Do?

Addressing vacant and abandoned properties doesn’t have to be overwhelming. Local officials have powerful tools at their disposal to reverse decline and spark renewal:

• Support Land Banks to acquire, hold, and repurpose problem properties.
• Strengthen Code Enforcement to ensure property owners are held accountable.
• Partner with Security Experts like DAWGS to secure vacant sites quickly and deter crime.
• Pass Vacancy Ordinances to fine or tax long-term abandonment and fund neighborhood revitalization.
• Invest in Rehabilitation Programs to bring properties back into productive use.

The goal isn’t just to prevent decline—it’s to fuel neighborhood renewal and resilience.

Take Action Now

Don’t let vacant and abandoned properties drain your community’s future. Proactive strategies—like securing properties, enforcing codes, and supporting land banks—can break the cycle of decline and spark new growth.

Ready to protect your neighborhood and your investment? Contact DAWGS today to learn how our vacant property solutions can safeguard your community and restore value to your neighborhood.

Don’t wait for problems.
Take control—partner with DAWGS and turn vacant properties from liabilities into opportunities.

Sources

1. National Vacant Properties Campaign. “Vacant Properties: The True Cost to Communities.” National Vacant Properties Campaign, 2005. [Free PDF]
2. Center for Community Progress. “The Costs of  Vacant, Abandoned,  and Deteriorated Properties.” Center for Community Progress, 2019. [Free PDF]
3. Frank S. Alexander. “Land Banks and Land Banking.” Center for Community Progress, 2015. [Free PDF]
4. Krieger J. (2010). Home is Where the Triggers Are: Increasing Asthma Control by Improving the Home Environment. Pediatric allergy, immunology, and pulmonology, 23(2), 139–145. doi: 10.1089/ped.2010.0022. [Free PMC paper]  
5. Mallach, Alan. The Empty House Next Door: Understanding and Reducing Vacancy and Hypervacancy in the United States. Lincoln Institute of Land Policy, 2018. [Free PDF]