Anxiety can arise due to external circumstance.
Ven. Sariputta taught:
DN34:1.5.2: What four things are helpful?
DN34:1.5.3: Four situations:
DN34:1.5.4: living in a suitable region, relying on good people, being rightly resolved in oneself, and past merit.
Living in a bad neighborhood is indeed stressful. If the neighborhood is a given and you cannot move, find and rely on good people. If good people are not available, live ethically to be worth of the company of good people.
Anxiety can also arise internally:
MN22:18.2: “Sir, can there be anxiety about what doesn’t exist externally?”
MN22:18.3: “There can, mendicant,” said the Buddha.
MN22:18.4: “It’s when someone thinks,
MN22:18.5: ‘Oh, but it used to be mine, and it is mine no more.
MN22:18.6: Oh, but it could be mine, and I will get it no more.’
The remedies for internal anxiety are explained further in MN22:
MN22:19.1: “But can there be no anxiety about what doesn’t exist externally?”
MN22:19.2: “There can, mendicant,” said the Buddha.
MN22:19.3: “It’s when someone doesn’t think,
MN22:19.4: ‘Oh, but it used to be mine, and it is mine no more.
MN22:19.5: Oh, but it could be mine, and I will get it no more.’
MN22 is quite extensive and discusses other such cases, and may therefore be of some help in your situation.
A key point to understand in MN22 is that possessiveness (i.e., "mine") is a trigger for anxiety. For example, if we miss the pleasant neighbors from our old neighborhood, we might grow sad and feel helpless. Therefore, focusing on the loss causes anxiety.
However, if we focus on being a nice neighbor, then our new neighborhood now has a nice neighbor. We become that nice neighbor and bake cookies for our neighbors and say "hello!".
And that is the essence of practicing unlimited love, compassion, rejoicing and equanimity. We can look inside ourselves and let that light shine forth to brighten the world.
So it is not a matter of denial. It is a matter of affirmation and giving. It is about sensing a lack and giving what is needed.