Giving Compass' Take:

• Researchers from the Urban Institute investigated how gun violence affects the economic health of communities, which varies between cities. 

• How can funders help communities address gun violence? What does gun violence look like in your city? 

• Learn about Philadelphia's plan to reduce community gun violence.  

Do surges in gun violence slow business growth and lower home values, homeownership rates, and credit scores in communities? How do increases in gun violence shape local economic health over time? To answer these important questions, we assembled and analyzed newly available business establishment and credit score data, along with gunshot and sociodemographic data by census tract and gun homicide data (when available), for Baton Rouge, Louisiana; Minneapolis, Minnesota; Oakland, California; Rochester, New York; San Francisco, California; and Washington, DC.

Our findings demonstrate that sharp and sudden increases (or surges) in gun violence can significantly reduce the growth of new retail and service businesses and slow home value appreciation. Further, higher neighborhood gun violence can be associated with fewer retail and service business establishments and new jobs. Higher gun violence also can be associated with lower home values, credit scores, and homeownership rates. Surges in gun violence reduce the growth rate of new retail and service businesses. Across Minneapolis, Oakland, San Francisco, and Washington, DC, gun homicide surges in neighborhoods reduced the growth rate of new retail and service establishments by 4 percent.

City-specific analyses showed the following:

  • In Minneapolis, each additional gun homicide in a census tract in a given year was related to 80 fewer jobs the next year.
  • In Oakland, each additional gun homicide in a census tract in a given year was related to 5 fewer job opportunities in shrinking businesses the next year.
  • In Washington, DC, each additional gun homicide in a census tract in a given year was related to two fewer retail and service establishments the next year. Every 10 additional gunshots in a census tract in a given year were related to one less new business opening, one more business closing, and 20 fewer jobs in new establishments the same year.