Publications Tagged ‘property values’
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Article
Neighborhood Effects of Concentrated Mortgage Foreclosures LINK
As the national mortgage crisis has worsened, an increasing number of communities are facing declining housing prices and high rates of foreclosure. Central to the call for government intervention in this crisis is the claim that foreclosures not only hurt those who are losing their homes to foreclosure, but also harm neighbors by reducing the value of nearby properties and in turn, reducing local governments’ tax bases. The extent to which foreclosures do in fact drive down neighboring property values has become a crucial question for policy-makers. In this paper, we use a unique dataset on property sales and foreclosure filings in New York City from 2000 to 2005 to identify the effects of foreclosure starts on housing prices in the surrounding neighborhood. Regression results suggest that above some threshold, proximity to properties in foreclosure is associated with lower sales prices. The magnitude of the price discount increases with the number of properties in foreclosure, but not in a linear relationship. Working Paper
Schuetz, Jenny, Vicki Been and Ingrid Gould Ellen. Journal of Housing Economics . December 2008.
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Policy Brief
The Impact of Supportive Housing on Surrounding Neighborhoods: Evidence from New York City PDF
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.
Amy Armstrong, Vicki Been, Ingrid Gould Ellen, Michael Gedal, Ioan Voicu. November 2008.
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Working Paper
The Impact of Supportive Housing on Surrounding Neighborhoods PDF
Communities across New York City and around the nation commonly oppose proposals to open supportive housing in their neighborhoods because of fear that the housing will decrease the quality of life in the neighborhood, and lead to reductions in property values. This study aims to give supportive housing providers and local government officials objective, credible information to guide policy decisions and to respond to opponents’ fears and arguments. Using a difference-in-difference regression model to isolate the effect of supportive housing from more general macro and micro market trends and neighborhood variations, this paper examines the impact that almost 7,500 units of supportive housing created in New York City over the past twenty years have had on their host neighborhoods over time.
Been, Vicki, Ingrid Gould Ellen, Michael Gedal, Ioan Voicu. October 2008.
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Working Paper
Neighborhood Effects of Concentrated Mortgage Foreclosures PDF
As the national mortgage crisis has worsened, an increasing number of communities are facing declining housing prices and high rates of foreclosure. Central to the call for government intervention in this crisis is the claim that foreclosures not only hurt those who are losing their homes to foreclosure, but also harm neighbors by reducing the value of nearby properties and in turn, reducing local governments’ tax bases. The extent to which foreclosures do in fact drive down neighboring property values has become a crucial question for policy-makers. In this paper, we use a unique dataset on property sales and foreclosure filings in New York City from 2000 to 2005 to identify the effects of foreclosure starts on housing prices in the surrounding neighborhood. Regression results suggest that above some threshold, proximity to properties in foreclosure is associated with lower sales prices. The magnitude of the price discount increases with the number of properties in foreclosure, but not in a linear relationship.
Schuetz, Jenny, Vicki Been, Ingrid Gould Ellen. Journal of Housing Economics, December 2008. October 2008.
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Policy Brief
The Benefits of Business Improvement Districts: Evidence from New York City PDF
This study is the first large-scale study of the impact of Business Improvement Districts on commercial property values. The report explores what these findings mean and how they can be used to better understand the role these organizations play in local economic development.
Amy Armstrong, Ingrid Gould Ellen, Amy Ellen Schwartz, Ioan Voicu. July 2007.
business improvement districts, economic development, property values
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Working Paper
The Effect of Community Gardens on Neighboring Property Values PDF
Cities across the United States that have considerable vacant land are debating whether to foster community gardens on that land, while cities with land shortages are debating when to replace gardens with other uses. Meanwhile, many cities are looking for new ways to finance green spaces. Little empirical evidence about the neighborhood impacts of community gardens is available, however, to inform the debate or to help cities design financing schemes. This paper estimates the impact of community gardens on neighborhood property values, using rich data for New York City and a difference-in-difference specification of a hedonic regression model. We find that gardens have significant positive effects, especially in the poorest neighborhoods. Higher quality gardens have the greatest positive impact.
Been, Vicki and Ioan Voicu. Real Estate Economics, Vol. 36, Issue 2, (Summer 2008). June 2007.
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Working Paper
The Impact of Business Improvement Districts on Property Values: Evidence from New York City PDF
Our paper aims to fill this gap by examining the impact of BIDs on commercial property values in New York City. With the largest pool of BIDs in the country, New York is an ideal study site. Its 55 BIDs encompass a broad range of budget sizes, services and locations. This large and diverse set of BIDs, together with the city’s tremendous size and diversity of neighborhoods, allows us to examine the impact of BIDs in very different types of areas, including both very high-density office districts and more suburban-style, retail strips. Thus, we can gain some insight into the underlying mechanisms through which BIDs influence property values and the circumstances under which BIDs may be a useful tool for local economic development. Further, the diversity of BID and neighborhood types offers the opportunity to examine the robustness of our findings, and gauge the extent to which the lessons learned can be generalized and applied to other cities and circumstances.
Ellen, Ingrid Gould, Amy Ellen Schwartz and Ioan Voicu. Brookings-Wharton Papers on Urban Affairs, (2007). May 2007.
business improvement districts, economic development, neighborhoods, property values
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Working Paper
The Condominium v. Cooperative Puzzle: An Empirical Analysis of Housing in New York City PDF
One of the enduring puzzles of New York City’s housing market is the persistence of the housing cooperative, despite the prevailing wisdom that condominiums are more valuable than cooperatives. In this article, we examine the theoretical advantages and disadvantages of cooperatives and condominiums, and apply these theoretical insights to empirically test whether there is a price premium attributable to condominium housing. We then use our findings to speculate as to why the cooperative form remains dominant in New York City and whether its dominance is likely to continue in the future. The empirical analysis is based on hedonic models of house values and uses rich data on apartments sold in New York City between 1984 and 2002.
Schill, Michael H., Ioan Voicu, and Jonathan Miller. The Journal of Legal Studies, vol. 36 (June 2007). July 2006.
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Working Paper
Does Federally Subsidized Rental Housing Depress Neighborhood Property Values? PDF
Few communities welcome subsidized housing, with one of the most commonly voiced fears being reductions in property values. Yet there is little empirical evidence that subsidized housing depresses neighborhood property values. This paper estimates and compares the neighborhood impacts of a broad range of federally-subsidized, rental housing programs, using rich data for New York City and a difference-in-difference specification of a hedonic regression model.
Ellen, Ingrid Gould, Michael H. Schill, Amy Ellen Schwartz, and Ioan Voicu. Journal of Policy Analysis and Management, Vol. 26, No. 2, (Spring 2007). March 2005.
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Working Paper
The External Effects of Place-Based Subsidized Housing PDF
Prior research has provided little evidence that subsidized housing investments generate significant external benefits to their neighborhoods.This paper revisits the external effects of subsidized housing, exploring the case of New York City. Relying on geocoded administrative data, we estimate a difference-in-difference specification of a hedonic regression model.
Schwartz, Amy Ellen, Ingrid Gould Ellen, Michael H. Schill, and Ioan Voicu. Regional Science and Urban Economics, Vol. 36, No. 6. (November 2006). February 2005.
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Working Paper
Estimating the External Effects of Subsidized Housing Investment on Property Values LINK
Although housing investment is often promoted as a tool for neighborhood improvement, prior empirical research has failed to provide convincing evidence that subsidized housing investment generates significant external effects. This paper revisits the external effects of subsidized housing investment. With the benefit of a very rich dataset, we use a difference-in-difference specification of a hedonic regression model to estimate the spillover effects of publicly-assisted housing units produced under the New York City Ten Year Plan program.
Schwartz, Amy Ellen, Ingrid Gould Ellen, Ioan Voicu, and Michael H. Schill. Federal Reserve Board, Proceedings, (2003) (Lincoln Institute of Land Policy). April 2003.
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Article
Race-Based Neighborhood Projection: A Proposed Framework for Understanding New Data LINK
This paper outlines the race-based, neighbourhood projection hypothesis which holds that, in choosing neighbourhoods, households care less about present racial composition than they do about expectations about future neighbourhood conditions, such as school quality, property values and crime. Race remains relevant, however, since households tend to associate a growing minority presence with structural decline. Using a unique data-set that links households to their neighbourhoods, this paper estimates both exit and entry models and then constructs a simple simulation model that predicts the course of racial change in different communities. Doing so, the paper concludes that the empirical evidence is more consistent with the race-based projection hypothesis than with other common explanations for neighbourhood racial transition.
Ellen, Ingrid Gould. Urban Studies, 37(9), pp. 1513-1533. July 2000.
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Article
An Economic Analysis of Housing Abandonment PDF
Landlord abandonment of rental housing has affected many American cities since the 1960’s. Because of data limitations, there have been few empirical analyses of the determinants of housing abandonment. In this paper, we use a rich database that contains information on individual residential properties in New York City to estimate a reduced form model of owner abandonment. We model an owner’s decision to abandon his or her property as being similar to an investor’s decision to exercise a put option on a financial instrument. When required to pay delinquent taxes, a wealth-maximizing landlord has an incentive to cede ownership of his or her residential property when the value of all outstanding liens exceeds the property’s market value. Estimates from the model are used to examine whether empirical evidence supports this option model of abandonment.
Scafidi, Benjamin P., Michael H. Schill, Susan M. Wachter and Dennis P. Culhane. Journal of Housing Economics, 7, pp. 287-303. July 1998.