A telephone survey of 400 respondents in each of the 8 neighborhoods was conducted using random digit dialing techniques. The survey data were supplemented with data on housing prices, crime rates, and residential and commercial deterioration. Findings indicate that when neighborhood confidence exists (i.e., when property appreciation is high and residents invest in their properties) crime and fear of crime make little difference in individual orientations. However, when neighborhood life is threatened, crime and fear of it take on new significance in the minds of relevant actors. The role of perceived racial instability in this process is clear: fear of crime predicts behaviors and attitudes among respondents which lead to neighborhood deterioration, especially when residents (both black and white) perceive that the neighborhood is changing (racially). Fear of crime has less effect among those who judge their neighborhoods as being stable. Findings suggest that visible policing activities to bolster confidence are important in low crime areas into which minorities are likely to move. In addition, broad scale programs by community organizations and visible support by governmental agencies, including housing renovation and regular refuse collection, are also important in reducing the fear of crime. Data tables, footnotes, street maps, diagrams, and about 80 references are included. Study instruments are appended. (Author abstract modified)