Foreclosure Rates, Neighborhood Disorder, and Health

Little is known about the health effects of the economic downturn, with foreclosure one of its most visible signs. Research in economics suggests that the impact of an economic downturn is first felt through emotional well-being. Hence we explore onset of depression over the interval of the economic downturn with a unique data source, the National Social Life Health and Aging Project (NSHAP). Fortuitously NSHAP wave 1 was collected in 2005-2006 and wave 2 in 2010-2011, bounding the economic downturn and foreclosure crisis. We link these data with national foreclosure data to examine the effect of neighborhood foreclosure rates on depression onset. We observe a dramatic uptick in reports of depressive symptoms among older adults who were exposed to communities most severely impacted by the foreclosure crisis. Older residents in neighborhoods with high rates of foreclosure may need additional supports to maintain community residence and withstand the effects of the economic downturn.