While foreclosures are uncommon in New York City when compared to national averages, when they do occur, they can have a devastating effect on surrounding properties.
According to a survey conducted by the Citizen Housing & Planning Council and cited by The Wall Street Journal, when a foreclosure occurs in the Big Apple, properties within 250 feet of them tend to see building violations spike by as much as 14 percent.
These offenses – more specifically, Class C violations – often include the presence of lead paint and significant problems with a building's heat and hot water systems.
"In single-family neighborhoods, you see empty homes and swimming pools filled with algae, in a way that you don't see them in multifamily neighborhoods," Housing Preservation and Development Department senior fellow Harold Shultz told the newspaper.
While the problems are occurring in nearly every borough of New York City, the predominant number of violations are in northern Manhattan, the west Bronx and central Brooklyn.
However, despite the issue, the foreclosure rate is significantly lower in the city when compared to the national average. According to RealtyTrac, there were only 95 foreclosures throughout the city in December. As the number of distressed properties continues to be limited, purchasing a home for sale in New York City could prove to be a healthy investment.
