Is it possible to shorten the fallout of an economic crisis? Researchers at the University of Maryland believe it’s possible. Preventative measures can mitigate the impact of economic downturns by creating neighborhoods that are naturally resilient to variances in economic performance. Diverse neighborhoods, researchers propose, can decrease the rate of foreclosures and sales before and after economic crises strike. What puts homogeneous neighborhoods at risk?  After World War II, planners developed neighborhoods with a single income bracket in mind. Like their urban counterparts, these planned communities segregated individuals and families based on their earning power and, occasionally, place of employment. During difficult economic times, neighborhoods that lack diversity are prone to clusters of foreclosures and sales before and after the peak of the recessionary activity. Neighborhoods that relied heavily on one employer also suffered severe spikes in financial difficulties. The homogeneous nature of these neighborhoods left them vulnerable. If one company or industry suffered, the entire neighborhood suffered as well. Neighborhoods with high concentrations of bank-owned and for-sale homes take longer to recover from economic downturns. Residents that struggled with mortgages may have postponed home maintenance in an effort to conserve resources for mortgage payments. As a result, many foreclosed homes show signs of physical deterioration. Additional damages may occur during the eviction process. Neighborhoods with high concentrations of foreclosures and sales experience the devaluation of nearby homes. Additionally, as lender confidence decreases, so will investment in the area. To create neighborhoods that are more resilient in the face of economic trouble, University of Maryland researchers suggest that developers shift to mixed-income housing models. Uncovering the economic disadvantages of homogeneous neighborhoods The study began by creating a data set that logged zoning and foreclosures across 14 metropolitan statistical areas (MSA). Researchers selected MSAs from throughout the...

Economic forecasts can seem as mysterious as reading tea leaves or interpreting the energy of a crystal ball. Hit or miss at best. Yet with several economists spotting a recession on the horizon, property managers may want to take precautions. The U.S. Bureau of Labor Statistics kicked off the summer with a wave of bad news. Only 38,000 nonfarm jobs were created in the previous month—122,000 fewer than many economists expected. World economies are tottering on the brink of a slump. Washington Times points to the misallocation of credit as a catalyst for economic decline. Policies created by the Fed, Bank of Japan, and European Center bank subsidize government debt rather than funneling that support to job-generating small business. Additional financial, labor, and economic policies muddy up the economic waters. The end results may be stagnant or weakening economies throughout North America, Europe and Asia. The bottom line: the next 12 months may bring another economic decline. JP Morgan cites the U.S. as a “medium-term recession risk.” If there is a decline, it’s too early to determine its severity. Property managers can brace for impact of any caliber with these stabilizing tips: Be selective. Now is the time to be picky about your tenants. In depth screening processes will help property managers identify tenants who pose the least amount of risk. Collect now. Reconcile late payments and balance the books. Position the business in the best financial state possible and maintain that balance. Clean house. Replace problematic tenants with more reliable candidates while the market is still favorable. Appear occupied. If your space is currently vacant, outsiders should not be able to tell. Properties that show signs of neglect are a turn off for property hunters. In contrast, neglected properties are very appealing to...

Philadelphia, Detroit, Cleveland, Atlanta—these major U.S. cities top data lists as the slowest to recover from the recession. Their areas of weakness include high unemployment rates, failing businesses, job losses, crime, and strained budgets but a greater common theme unites them. The cities are too historic, too important, to fail. Restoring these iconic cities to their former glory—or better, propelling them towards an even brighter future—requires a significant amount of creativity. Community leaders are forming dynamic partnerships with local businesses and governments. The collaborations aim to revitalize America’s cities, breathing new life into them through arts education, community programming, and structural reimagining. Two programs in Atlanta are an excellent illustration of the sort of creative approaches that can make a notable difference. LaShawn Hoffman, CEO of Pittsburgh Community Improvement Association (PCIA) in Atlanta, has been a member of the Pittsburgh community for ten years. The neighborhood, first overlooked during the city’s 1996 Olympic revitalization efforts and then hit hard during the housing market downturn, had settled into a state of neglect. Abandoned homes and empty storefronts opened the gate to increased crime and a lack of community cohesion. Hoffman witnessed multiple break-ins and other crimes firsthand. He was determined to witness the neighborhood’s restoration firsthand as well. “This is my home,” he says. “I’m personally invested here and I’ve long been able to see its potential.” PCIA purchased 31 bank-owned homes in Pittsburgh using funds from the Neighborhood Stabilization Program. After restoring the homes, additional local grants were used to give the properties eco-friendly updates. The renovated properties were then placed back on the market at affordable prices. Though it was an excellent start towards giving the neighborhood a face lift, Hoffman and his team knew that pretty houses would not address the root...