Neighborhood Reputation and Resident Sentiment in the Wake of the Las Vegas Foreclosure Crisis.

Abstract

This study examines how two major components of a neighborhood's reputation-perceived disorder and collective efficacy-shape individuals' sentiments toward their neighborhoods during the foreclosure crisis triggered by the Great Recession. Of central interest are whether neighborhood reputations are durable in the face of a crisis (neighborhood resiliency hypothesis) or whether neighborhood reputations wane during times of duress (foreclosure crisis hypothesis). Geo-coded individual-level data from the Las Vegas Metropolitan Area Social Survey merged with data on census tract foreclosure rates are used to address this question. The results provide qualified support for both perspectives. In support of the neighborhood resiliency hypothesis, collective efficacy is positively associated with how residents feel about the quality of their neighborhoods, and this relationship is unaltered by foreclosure rates. In support of the foreclosure crisis hypothesis, foreclosure rates mediate the effects of neighborhood disorder on resident sentiment. The implications of these findings for community resiliency are discussed.