When people think about what drives the price of a home, location, size, condition, and nearby amenities usually take center stage. But one of the most powerful—and sometimes underestimated—factors is neighborhood safety. Crime and safety scores shape how residents feel on a daily basis, and they also influence how the market perceives and prices homes.
The reality is clear: homes in neighborhoods considered safe are worth more, sell faster, and tend to hold their value longer. On the other hand, areas with high crime rates or even a reputation for being unsafe can struggle to attract buyers, leaving sellers with fewer offers and lower property values. This connection between crime, safety, and real estate value is well-documented across cities in the U.S. and around the world.
The Relationship Between Crime and Home Prices
Research consistently shows a negative relationship between crime and housing values. More than 80 percent of studies report that crime reduces property values (Florida State University). One influential study found that homes within just 0.1 miles of a registered sex offender sell for about 4 percent less, or roughly $5,500 below comparable properties (American Economic Review). Another analysis showed that each additional violent crime reported on a street can reduce local home prices by nearly 2 percent, while even minor anti-social behavior incidents may shave about 1 percent off values (Journalist’s Resource).
These numbers may sound small, but the cumulative effect can be dramatic. A neighborhood that sees consistent violent crime over the course of a year can experience a measurable decline in home values, while a safer area nearby maintains steady growth. Over time, these differences add up to tens of thousands of dollars in lost equity.
Neighborhood Comparison:
High Crime vs. Low Crime in San Diego, CA
1. East Village — Higher Crime Area
East Village, located in downtown San Diego, faces significant safety concerns. According to one analysis, its crime rate is 441% above the national average, making it one of the city’s most dangerous neighborhoods.
Median Sale Price (July 2025):
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$610,000
2. City Heights — Lower Crime Area
By contrast, City Heights is known for relatively lower crime compared to nearby neighborhoods like North Park or Hillcrest (Wikipedia). While not among the safest citywide, it is notably more stable and livable.
Median Sale Price (July 2025):
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$640,000
Side-by-Side Snapshot
| Neighborhood | Crime Level | Median Sale Price (July 2025) | YoY Price Change |
|---|---|---|---|
| East Village | Very High (≈441% above avg) | $610K | Down ~6.7% |
| City Heights | Relatively Lower (vs peers) | $640K | Down ~6.6% |
Despite being only about 10 minutes away, the contrast between East Village and City Heights highlights how crime levels influence home values. East Village, with crime rates more than four times the national average, sees median home prices around $610,000, while City Heights, which experiences relatively lower crime, holds stronger at about $640,000. Buyers are willing to pay a premium for neighborhoods where safety and stability feel more secure, underscoring how closely home values are tied to local crime and safety scores.
The Ripple Effect of Crime on Communities
Crime impacts more than just property values—it affects the entire ecosystem of a neighborhood. Higher crime rates can discourage businesses from investing, reduce foot traffic for local shops, and increase costs for services like insurance and security. These ripple effects can weaken the local economy, making it even harder for neighborhoods to rebound.
Conversely, lower crime rates create a positive cycle. Safer streets attract more residents, boost demand for housing, and encourage new businesses to open. Homeowners gain equity, which allows reinvestment in their properties, further strengthening the neighborhood. This cycle is why safety is such a cornerstone of community health and real estate stability.
How Safety Improvements Translate into Higher Values
Neighborhoods can and do change. When safety improves, property values often rise alongside it.
In Orange County, California, a University of California, Irvine study found that the introduction of affordable housing not only reduced crime but also boosted the value of nearby homes by about $16,000 per property. In Detroit, a large-scale demolition program that targeted blighted and abandoned properties helped reduce crime and improve neighborhood stability. Researchers found that homes located near these demolitions experienced a 4.2 percent increase in value, with some areas seeing gains as high as 13.8 percent when paired with broader revitalization efforts.
Why Hyperlocal Crime Data Matters
While the connection between crime and home value is well-documented, broad citywide statistics do not always tell the whole story. Conditions can change dramatically from one street to the next. A property located just a few blocks away from a higher-crime area may enjoy much better safety metrics, but this detail is often obscured in generalized reports.
That is why hyperlocal data is so important. Local Insights provides hyperlocal crime data and safety scores within a one-mile radius of any address in major U.S. cities. Instead of relying on citywide or ZIP code-level averages, buyers and agents can see the true picture of a specific neighborhood. This precision matters because real estate decisions are made at the street level, not the city level.
Imagine two homes priced similarly but located in different parts of the same city. One is in a neighborhood where crime has been steadily declining over the past three years, while the other sits on the edge of an area with persistent safety issues. Without hyperlocal data, those differences might not be clear until after the purchase. With it, buyers can make better-informed decisions and agents can guide clients with confidence.
Balancing Safety with Other Livability Factors
Of course, crime is only one part of what makes a neighborhood livable. Buyers also consider schools, amenities, transit options, and affordability. A neighborhood may still appreciate in value despite moderate crime if it offers excellent schools, a short commute to downtown, or unique cultural amenities.
That is why Local Insights does not stop at safety data. Each report includes more than 300 hyperlocal data points covering housing trends, demographics, amenities, schools, and more. This gives buyers and agents a holistic view of what life in a neighborhood is really like and how it might change in the future.
How Buyers, Agents, and Investors Use Crime Data
For real estate agents, crime and safety data can be a trust-building tool. By presenting clients with precise, hyperlocal information, agents can answer questions before they are even asked and demonstrate expertise in their market.
For buyers, safety scores allow side-by-side comparisons between neighborhoods. They can see if paying a premium for a safer area may be worth it for long-term peace of mind and equity growth.
For investors, tracking safety trends is a way to identify emerging opportunities. Neighborhoods where crime is falling often see property values climb shortly after, making them attractive targets for early investment.
Crime and safety scores have a measurable impact on property values and long-term appreciation. Buyers are willing to pay more for peace of mind, and sellers in safer neighborhoods benefit from stronger demand. On the flip side, neighborhoods with high crime may struggle to attract buyers and see slower appreciation.
With Local Insights, buyers, sellers, and agents no longer have to rely on broad averages or incomplete data. By offering hyperlocal crime and safety scores within a one-mile radius, along with more than 300 additional data points on housing, schools, and amenities, Local Insights makes it possible to see the full picture. That level of clarity can make the difference between a smart investment and a costly mistake.
