The Financial Impact of Registered Sex Offenders on Home Sale Prices: A Case Study of McLean County, Illinois

Abstract

This study extends the current sex offender and housing literature by examining whether the presence of registered sex offenders (RSOs) and sexual predators (SPs) influenced home sale values in a mixed rural/agricultural and urban community. Using ArcGIS, the residences of RSOs in McLean County, Illinois, and home sale transactions, along with property and neighborhood characteristics were geocoded. The associations of home sale values to the distance to the nearest RSO and SP, as well as, the concentrations of RSOs and SPs were examined. Results revealed that each foot increase between the sold home to the residence of the nearest RSO and SP was associated with an increase in home sale prices of 17.03 and 15.25 U.S. dollars, and the concentrations of two or more RSOs and SPs was associated with a reduction in home sale prices of 12,750 and 17,797 U.S. dollars. These findings inform the debate surrounding the requirements placed on sexual offender registration, community notification, and residency restrictions.