Across the United States and in other countries, there are millions of homes that were abandoned for different reasons. Some were abandoned by their owners due to personal problems; others were neglected when the owners suddenly die. Whatever the underlying reason may be why such homes became idle for many years, they certainly pose some negative impacts on the neighborhood and the local, as well as the national economy.
Among the ill effects of derelict homes that were concentrated in a single locality is the spike in crimes, particularly in low-income neighborhoods. This can be traced to the depreciation of the market value of surrounding properties that are occupied. Additionally, finding financial institutions that offer competitive interest rates in home mortgages in such a neighborhood becomes hard but not impossible. With all these negative effects, there are truly excellent reasons to reverse the situation and make every abandoned home livable and listed for sale or rent.
Here are some ways that renovating abandoned homes can positively impact local communities and the economy as well:
It could dramatically lower local crime rates.
One of the ill effects of having a lot of abandoned buildings in a community is the proliferation of crimes due to the negative economic impacts that such vacancies pose. Conversely, by renovating and putting such neglected homes back into active use, local communities can help bring down crime rates. While it’s not by any means a guarantee, it’s a logical assumption given how the probable cause of such social and economic woes are the abandoned buildings.
You can expect to get great mortgage rates.
As mentioned, too many abandoned private residences in a single community can dramatically make the interest rates on mortgages higher than usual. By renovating these derelict houses, the market values of neighboring properties can increase, thus restoring the confidence of financial institutions. Consequently, this renewed confidence could lead them to offer the lowest mortgage rate possible for those who wish to get financing for their dream property. This is an impact that could start a ripple effect on peoples’ lives, the real estate industry, and economies.
Prices of real property could go up.
With the once-abandoned homes brought back to life through renovations, they can then be put up for sale or rent. Slowly, the revitalization of the real property market could push up the prevailing market prices of such assets. This is another positive effect that could benefit not only the property owners but the entire industry as well. And when the real estate industry is vibrant, so will the economy be, no matter how small the impact may be.
The environment would be greener.
A lot of urban planners, eco-warriors, architects, and engineers are united in their belief that repurposing or renovating abandoned is the logical way to solve the problem. By renovating the neglected homes in a community instead of tearing them down and building new ones, the carbon footprint would be lowered. Also, there would be a minimal need to use limited building materials that come from natural resources. When put together, these things make renovations the sustainable solution that best suits such a challenging problem.
Homeless people or those looking for low-cost housing would benefit immensely.
There are millions of homeless people not only in America but in other countries across the world. This social problem happens on a massive scale and gives birth to other social issues as well, such as crime rate increase and loss of investor confidence in neighborhoods with a lot of criminal activities. An abandoned home can be turned into a rental apartment, bed-and-breakfast, or transitional housing. There are plenty of possible new uses to these abandoned buildings; one only has to use imagination to determine the perfect use for each one.
Residents’ life quality can improve.
With the once dilapidated homes given a fresh lease of life, gloomy neighborhoods can become lively once more. As mentioned earlier, local crime rates can be lowered and the economy can benefit. As the market value of homes located within the community will also be invigorated with the renovated homes, property owners will be generally at ease and optimistic. This is due to the prospect of getting good money from their homes should they decide to eventually consider selling.
These wide-ranging impacts from the act of renovating abandoned homes prove just how much can be achieved when efforts are made to restore things. With the initial financial and manpower investments to be made, the returns can truly be worth the small troubles.