How Do Sex Offenders Really Impact Real Estate Value?

When a sex offender moves into a neighborhood, it may impact the neighborhood in many ways. One of those ways includes issues with the real estate value. It’s estimated that per case, sex offenses cost around $1 million, and part of those costs includes the depreciation of home values when a sex offender moves into an area.

Here’s what you need to know about how sex offenders can affect real estate value.

How Much Is Real Estate Value Affected by Sex Offenders?
How Much Is Real Estate Value Affected by Sex Offenders? Created By:  PeopleFinders

Monetary Impact

Of course, the most obvious impact is a direct monetary one. You can typically see a measurable impact on homes within a 0.1-mile radius of the sex offender’s home. Homes within a 0.1-mile radius see about a 4% reduction in value, while homes right next to a sex offender see about a 12% reduction in value. The good news is that these homes tend to bounce right back to market value once a sex offender moves out.

It’s also good to remember that sex offenders aren’t the only thing that can negatively impact a home’s retail value. All types of crime, including but not limited to sex offenses, can impact your home’s value. In one estimate, homes in ZIP codes with a “very high” risk index sold for $157,844 on average, while homes in ZIP codes with a “very low” risk index sold for $512,841 on average.

Ability to Sell a Home

Having a sex offender in the neighborhood can also negatively impact your ability to sell your home in the first place. It can be significantly more difficult to sell a home when people are able to find out that they would potentially live right next to a sex offender if they were to buy the home. This can be frustrating for people who really want to get rid of a home.

However, it is possible to sell a home next to a sex offender, especially if the offender was convicted for a less serious crime. You just need to put a little bit more work into the selling process than you might otherwise have to. Additionally, you may be able to mark down the home’s price significantly to convince someone to buy it.

Different Types of Sex Offenders

It’s a good idea to take a look at the actual offense that placed the individual on the sex offender’s registry.

Much of the controversy surrounding sex offender registries has to do with the fact that relatively insignificant crimes can carry a lifelong registry requirement. In some areas, for example, public urination can grant sex offender status, even though that individual is unlikely to harm others.

In one estimate, 84% of offenses on the sex offender registry were child molestation or rape.

However, that still leaves 16% of offenses that were due to neither of these things, which often includes less harmful crimes like public urination. Taking a look at the actual crime can be a crucial part of deciding whether or not a sex offender’s presence in your neighborhood could be harmful.


Although sex offenders can impact real estate value, the actual impact can differ from case to case.

Additionally, the impact is fairly short-lived and tends to bounce back as soon as the offender leaves the neighborhood. The more research you do, the more likely it is that you’ll be able to manage your home’s value regardless of the presence of a sex offender in the neighborhood.


Jeff Campbell

Jeff Campbell is a father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

Recent Posts