Preserving History or Hindering Growth? The Heterogeneous Effects of Historic Districts on Local Housing Markets in New York City
Historic district designation has long been a topic of considerable debate. This report, conducted in collaboration with the National Bureau of Economic Research, provides new evidence to inform one aspect of this discussion—the effect that historic district designation has on housing. The report considers how designation of historic districts in New York City affects property values both within district boundaries and in the buffer areas just outside district boundaries, and explores how these effects vary across neighborhoods. Read the full report, the research brief, or view the press release.
We construct a database of non-prime hybrid adjustable and fixed rate mortgages from New York City that augments a rich set of loan and borrower risk characteristics with a variety of census tract level neighborhood characteristics. We find that these neighborhood characteristics are important for default behavior, even after an extensive set of controls. First, default rates increase with the rate of foreclosure notices and the number of lender-owned properties (REOs) in the tract. Second, default rates for home purchase mortgages are higher in predominantly black tracts, regardless of the borrower’s own race. We explore possible explanations for our findings.
This study on the neighborhood impacts of supportive housing examines the effects that 123 supportive housing developments across New York City’s five boroughs have had on surrounding property values over an 18-year period.