Building Homes, Reviving Neighborhoods: Spillovers from Subsidized Construction of Owner-Occupied Housing in New York City
This article examines the impact of two New York City homeownership programs on surrounding property values. Both programs, the Nehemiah Program and the Partnership New Homes program, subsidize the construction of affordable owner-occupied homes in distressed neighborhoods. Our results show that during the past two decades prices of properties in the rings surrounding the homeownership projects have risen relative to their ZIP codes. Results suggest that part of that rise is attributable to the affordable homeownership programs.
Leaders of American cities seeking to foster economic growth often look to success stories from other cities, hoping to find models and strategies to replicate. Some favorite strategies include investing in infrastructure, lowering taxes (both overall and in a targeted fashion), building sports stadiums, picking and promoting particular industries (such as "high tech"), and investing in casino gambling. But many benefits of those popular success stories are at best exaggerated and at worst apocryphal. Although the strategies sound appealing, and although each may have worked in particular well-publicized circumstances, as gambling did in Las Vegas, they are typically not successful and policymakers should be cautious in pursuing them.