We estimate the fraction of core-collapse supernovae ( CCSNe ) that remain undetected by optical SN searches due to obscuration by large amounts of dust in their host galaxies . This effect is especially important in luminous and ultraluminous infrared galaxies , which are locally rare but dominate the star formation at redshifts of z \sim 1-2 . We perform a detailed investigation of the SN activity in the nearby luminous infrared galaxy Arp 299 and estimate that up to 83 % of the SNe in Arp 299 and in similar galaxies in the local Universe are missed by observations at optical wavelengths . For rest-frame optical surveys we find the fraction of SNe missed due to high dust extinction to increase from the average local value of \sim 19 % to \sim 38 % at z \sim 1.2 and then stay roughly constant up to z \sim 2 . It is therefore crucial to take into account the effects of obscuration by dust when determining SN rates at high redshift and when predicting the number of CCSNe detectable by future high- z surveys such as LSST , JWST , and Euclid . For a sample of nearby CCSNe ( distances 6-15 Mpc ) detected during the last 12 yr , we find a lower limit for the local CCSN rate of 1.5 ^ { +0.4 } _ { -0.3 } \times 10 ^ { -4 } yr ^ { -1 } Mpc ^ { -3 } , consistent with that expected from the star formation rate . Even closer , at distances less than \sim 6 Mpc , we find a significant increase in the CCSN rate , indicating a local overdensity of star formation caused by a small number of galaxies that have each hosted multiple SNe .