Vacant and Abandoned Properties in Kansas City MOKansas City, MO
Pervasiveness and Cost
Kelly D. Edmiston
Senior Economist
March 21, 2011
CURRENT CONDITIONSCURRENT CONDITIONS
Residential Vacancy Rates( b )(September, 2010)
• 10,894 residential structures identified as vacant in Sep. 2010 using USPS data (estimate)
– 10.4 percent vacancy rate
• KCMO water records show 12,077 vacancies in Sep. 2010
– 8.4 percent vacancy rate
• The vacancy rate for single family dwellings in the U.S. as a whole was 3.8 percent (estimate) for single family structures
2010 Vacancy Rates, by time vacant (estimates)
12+ Months 24+ Months
Estimated KCMO Building Vacancies (2005 – 2010)g ( )
14,339
15,00015,000
12,340
12,50012,500
Total
10,894
10,00010,000
ResidentialVacancies
9,148
7,5007,500
Vacancies
5,0005,000
Source: Estimate generated from data provided by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau
2005 2006 2007 2008 2009 2010
Vacancy Rates, 2007 and 2010 (estimates)
Change in Vacancy Rates2007 20102007 – 2010
• Kansas City vacancies i d b b 1 800increased by about 1,800 (19.1 percent)
• The Kansas City vacancy i d f 8 9rate increased from 8.9
percent to 10.4 percent
• Significant variation in th (d li ) igrowth (decline) in vacancy
rates across KCMO is evident
OUTLOOKOUTLOOK
Warning SignsWarning Signs
• Mortgage arrears / Foreclosure
• Outstanding code violations / Poor physical conditioncondition
• Tax arrears
Utilit• Utility arrears
• Characteristics of nearby properties / Property values
• Absentee ownership
Serious Mortgage Delinquenciesq(January, 2011)
Serious Delinquency RateJackson County MO
8.0%
9.0%
8.0%
9.0%
Jackson County, MO(2002 and 2005 vintages)
3 0%
4.0%
5.0%
6.0%
7.0%
3 0%
4.0%
5.0%
6.0%
7.0%
0.0%
1.0%
2.0%
3.0%
0.0%
1.0%
2.0%
3.0%
2006 2007 2008 2009 2010 2011
Data Source: Lender Processing Services, Inc.
Mortgage Delinquency in High Foreclosure gNeighborhoods
• The vacancy rate in highThe vacancy rate in high delinquency neighborhoods was 15.0 percent in 2010
• In September, 2007, the Sep e be , 00 , evacancy rate was 14.6 percent
IMPLICATIONSIMPLICATIONS
Costs to Homeowners
• Reduced property450 feet
300 feetReduced property values 150 feet
• Higher insurance i
Vacant Property
premiums
• Poorer quality of
p y
‐ $ 7,627
life ‐ $6,819
$3 542‐ $3,542
Wider Costs of Vacant PropertiesWider Costs of Vacant Properties
To the community To citiesTo the community
• Crime
• Fires
To cities
• Lost tax revenues– Lower property valuesFires
• Public nuisances
and health issues
– Delinquency
• Cost of disposalE ti t f $6 $15– Trash / dumping
– Rat infestations
– Estimates of $6 ‐ $15
per square foot
Source: National Vacant Properties Campaign
Contact Information:
K ll D Ed i tKelly D. Edmiston
Senior Economist
Community Development
1 Memorial Drive
Kansas City, MO 64198
(816) 881‐2004