The impact of different types of crimes on the recovery of house prices in Spain (2015-2019): an empirical analysis at the city level

Abstract

The 2008 economic crisis in Spain triggered a significant correction in housing prices, and signs of recovery did not manifest until early 2014. This article delves into the Spanish context, examining how various types of crimes influenced the housing price recovery between 2015 and 2019. A fixed-effects panel data analysis was conducted across 119 Spanish cities. The findings demonstrate that housing values depreciate in response to an increase in criminal activity, with noticeable effects emerging within one to two years (0.2%). Furthermore, it is confirmed that crime against property have a more pronounced negative impact on housing prices, especially robbery with violence (-1.3%) and burglary with forced entry (0.8%).