Just how low is the value of Anacostia’s existing housing stock? Last year, a consultant commissioned by the city  found that 15.5 percent of houses in greater Anacostia (not just the historic district) were vacant—many of which are in poor condition and saddled with tax debt. Sales volume has decreased steadily since 2005. Forty-two properties sold in Anacostia’s ZIP code in the first quarter of 2012, with prices [h]overing in the mid-$100,000 range, which is less than half the city’s average. You can find a cheap place to live there, but may not want to renovate if you ever plan to sell: Low appraisals mean you may not be able to recoup as much of your investment as you could in a healthier neighborhood. 

The appraisals are an unintended consequence of measures taken to stave off another foreclosure crisis. In 2010, federal regulators  forbade appraisers from communicating on home sales with banks, realtors, or developers, who until then had all coordinated to make deals work to sell homes to people who probably couldn’t really afford them. Now, besides suggesting a few similar homes the appraiser might have overlooked, they can’t make a case that a neighborhood should be worth more on paper.