Is my neighbor situation getting out of hand

A family on my street has been going downhill, and I am trying to figure out whether I should actually be concerned or if I am overreacting.
The wife owns the house, is married, and has two kids. Over time, the husband stopped working and started spending more time gambling at gas stations and using substances like weed and whippets. Things escalated to the point where police were called at least once, but nothing came of it.

For the past two weeks, I have not seen the wife or kids at all, which makes it seem like they may have left the house. Since then, another guy who is confirmed to have a criminal record has been coming and going and treating the place like a hangout. There is frequent loud music, cars parking in the middle of the street, and the garage and exterior look noticeably worse.

Today was the last straw for me, as he now has the cocaine nose, and the overall situation feels like it is deteriorating fast.

The house is only in the wife’s name, but from what I understand she may not be able to easily remove her husband due to marital or common law issues.
Is this the kind of situation that usually signals a neighborhood going downhill, or am I being overly anxious about something that will likely resolve on its own?