According to David Lightner, deputy city manager for economic development for Beverly Hills, Calif.,
the vast majority of homes in that city are smaller than their counterparts in
nearby Hancock Park. Yet the homes in Beverly Hills represent some of the most
expensive real estate in the United States. Lightner says that what homeowners
in his city are purchasing is a sense of security and a high level of government
services. "The Beverly Hills Police Department has a reputation for being
deployed in numbers that are greater than most communities. That’s what some
people value when they make that kind of investment."
 Residents of neighborhoods such as Hancock Park, who live in
close proximity to more marginal areas, sometimes take safety matters into their
own hands. Many of them form neighborhood watch groups. Homeowner Itta Bauman is
a block captain for the Hancock Park Homeowners Association. "We have a good
neighborhood patrol," she says, "but when you live in a big city, you always
have to be on the alert."
No matter how spectacular the property–or the price paid for it–a fear of
crime spilling over from adjacent areas often can have a dampening effect on a
neighborhood’s home values that is hard to shake. John McIlwain, the senior
resident fellow at the Urban Land Institute in Washington, D.C., says that crime
statistics can be a valuable source of information when researching a
neighborhood, but he warns homebuyers not to be too dissuaded by them. "There’s
always going to be crime in cities," he says. "Unfortunately, it’s part of life.
If the crime is modest, and there’s an active community group working with the
police, your housing values will go up, as long as there’s the pressure of
people wanting to buy and move into the cities."
 Back to Main Article: Investing in Urban Enclaves
|
