Publications
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Urban Land-Use Regulation: Are Homeowners Overtaking the Growth Machine?
The leading theory about urban land-use regulation argues that city zoning officials are full partners in the business and real estate elite’s “growth machine.” Suburban land-use officials, in contrast, are thought to cater to the interests of the majority of their electorate— “homevoters.” A unique database regarding over 200,000 lots that the New York City Planning Commission considered for rezoning between 2002 and 2009 allows us to test various hypotheses suggested by these competing theories of land-use regulation. This analysis reveals that homevoters are more powerful in urban politics than scholars, policymakers, and judges have assumed.
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Mortgage Foreclosures and the Shifting Context of Crime in Micro-Neighborhoods
In the wake of the housing crisis there is growing concern that increased mortgage foreclosures may lead to physical deterioration of buildings and increased vacancy rates in neighborhoods, undermining neighborhood social controls, and causing increases in local crime. While some recent research suggests that increased mortgage foreclosures in micro-neighborhoods cause modest increases in crime (Ellen, Lacoe, and Sharygin, 2013; Cui, 2010), this paper considers whether foreclosures lead to increased crime on a block, as well as the mechanisms through which foreclosures affect neighborhood crime. To shed light on mechanisms, we investigate whether and how foreclosures shift the location and type of criminal activity by changing the relative attractiveness to potential offenders of one location versus another. For instance, the presence of a vacant, foreclosed building may make it more likely that a drug dealer will sell drugs in a building rather than on the street. As a result, crime occurring inside residences (and in vacant buildings in particular) and on the street may increase by different magnitudes. In addition, we consider whether foreclosures affect resident reports of disorder. Using richly detailed foreclosure, 311, and crime data geo-coded to the blockface (a street segment in-between the two closest cross-streets), we estimate the impact of foreclosures on the location of crime within blockfaces. This research focuses on Chicago, Illinois. Like many areas of the country, housing prices in Chicago reached a peak in 2006, and declined through 2011. In September 2011, 8.7 percent of the mortgages in the Chicago metropolitan area were in foreclosure, giving Chicago the 11th highest foreclosure rate among the 100 largest metropolitan areas in the country. Recent media reports claim that foreclosed and abandoned buildings in Chicago attract criminal activity including gang activity, drug use, and burglaries, in addition to graffiti, and theft of copper pipes and radiators (Knight and O’Shea, 2011). This study takes an empirical look at how foreclosures have changed patterns of crime in Chicago.
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Unlocking the Right to Build: Designing a More Flexible System for Transferring Development Rights
This report details the untapped potential for NYC’s transferable air rights program, a critical tool for high-density housing development in New York City. Using case study examples, the report outlines limitations to the city’s current TDR policies and suggests a policy approach that could unlock millions of square feet of unused air rights to help produce more affordable housing.
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Do Housing Choice Voucher Holders Live Near Good Schools?
The Housing Choice Voucher program was created, in part, to help low-income households reach a broader range of neighborhoods and schools. This study explores whether low-income households use the flexibility provided by vouchers to reach neighborhoods with high performing schools. "Do Housing Choice Voucher holders live near good schools?" was published in the Journal of Housing Economics in March 2014.
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Quarterly Housing Update: 3rd Quarter 2013
Manhattan sales prices reached a new peak for the second consecutive quarter, according to the NYU Furman Center's 2013 Quarterly Housing Update: 3rd Quarter. Brooklyn saw the largest gains in price appreciation over the previous year at 15 percent, while the Bronx, Manhattan, and Queens showed gains over 10 percent. Citywide, new foreclosure filings rose roughly 15 percent since the same quarter last year.
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Give Credit Where Credit Is Due: Overhauling the CRA
The Community Reinvestment Act (CRA) is in need of a major overhaul. Since the CRA was enacted in 1977, and since the last major rewrite of the regulations more than 15 years ago, much about the financial services industry has changed. This chapter discusses why the regulatory system needs to be redesigned to allow for more regular and timely updates, allowing more rapid responses to what is working and what is not. By being more amenable to continuous improvement, the CRA should be more open to innovation and experimentation given the greater opportunity for making midterm corrections. This chapter starts with a brief overview of the CRA and its successes. It then outlines some ways to facilitate more regular updating of the CRA regulations, followed by a review of a number of ways to increase the effectiveness of CRA in helping to stabilize and revitalize low-and moderate-income (LMI) communities.
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Maintenance and Investments in Small Rental Properties: Findings from New York City and Baltimore
Nearly half of all poor, urban renters in the United States live in rental buildings of fewer than four units, and such buildings make up nearly half our nation’s rental housing stock. Yet small rental properties remain largely overlooked by researchers. We present two reports—from New York City and Baltimore—both providing suggestive evidence, drawn from a variety of sources, about the characteristics of small rental housing. We find that while small buildings offer lower rents and play a crucial role in housing low-income renters, these lower rents are largely explained by neighborhood location. Ownership matters, however. In New York, lower rents are associated with small buildings with resident landlords. Further, we also find better unit conditions in small rental buildings when compared to most larger properties, especially in small buildings with resident landlords. In Baltimore, we find that smaller-scale “mom-and-pop” owners dominate the small rental property market, but that the share of larger-scale owners increases in higher poverty areas of the city. The properties owned by these larger-scale owners receive fewer housing code violations and that these owners appear to invest more frequently in major improvements to their properties.
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High Stakes in the Classroom, High Stakes on the Street: The Effects of Community Violence on Students’ Standardized Test Performance.
This paper examines the effect of exposure to violent crime on students’ standardized test performance among a sample of students in New York City public schools. To identify the effect of exposure to community violence on children’s test scores, we compare students exposed to an incident of violent crime on their own blockface in the week prior to the exam to students exposed in the week after the exam. The results show that such exposure to violent crime reduces performance on English Language Arts assessments, and no effect on Math scores. The effect of exposure to violent crime is most pronounced among African Americans, and reduces the passing rates of black students by approximately 3 percentage points.
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Buying Sky: The Market for Transferable Development Rights in New York City
This policy brief analyzes development right transfers in New York City between 2003 and 2011, looking at the prices paid, number of rights transferred, location of the sending and receiving parcels, and legal mechanisms used, in order to shed light on an important but hard-to-track market. The report, “Buying Sky: The Market for Transferable Development Rights in New York City,” examines 243 arms-length transactions for which complete data is available, and finds wide variation in the price paid per square foot of development rights, even for sales within the same neighborhoods, programs, and time periods. See the press release or read the full report.
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Why It’s So Hard to Storm-Proof an Apartment Building
If Superstorm Sandy taught us anything, it's that we need housing that can withstand natural disasters. But resiliency efforts often focus on detached, single-family houses and ignore larger multifamily dwellings. There are a huge number of physical, financial, and political obstacles to storm-proof apartment buildings.
