Urban crime such as residential burglary is a social problem in every major urban area. As such, many mathematical models have been proposed to study the collective behavior of these crimes. In [V. B. Pasour, G. E. Tita, P. J. Brantingham, A. L. Bertozzi, M. B. Short, M. R. D’Orsogna and L. B. Chayes, A statistical model of crime behavior, Math. Methods Appl. Sci107 (2008) 1249–1267; M. B. Short, A. L. Bertozzi and P. J. Brantingham, Nonlinear patterns in urban crime: Hotspots, bifurcations, and suppression, SIAM J. Appl. Dyn. Syst.9 (2010) 462–483], Short et al. proposed an agent-based statistical model of residential burglary to model the crime hotspot phenomena. From the point of view of reaction–diffusion systems, the model is a chemotactic system with cross diffusion that exhibit hotspot phenomena. In this paper, we first construct a radial hotspot solution of this system, then study the linear stability of this hotspot solution by studying a nonlocal eigenvalue problem. It turns out that the stability of the hotspot is completely different depending on which spatial dimension the system is on. The main mathematical difficulty of the system involves treating the steep change of diffusion near the core of the hotspot, because of the quasilinearity induced by the cross diffusion. We believe that the techniques used in this paper can be developed to treat many other chemotactic systems.