Mikelbank finds that vacant properties have a significant impact on the home values of neighboring properties. 2  BIS Review 112/2010  for public schools, police, fire, and social services. Neighborhoods that were once vibrant have, in many cases, become blighted, and the resources necessary to address the problem are scarce.
The challenges associated with REO are not exclusive to older cities, such as Cleveland or Detroit, where economic forces have long threatened the sustainability of large infrastructures that support fewer residents.