An analysis of the neighborhood impacts of a mortgage assistance program: a spatial hedonic model
AbstractDown-payment or closing-cost assistance is an effective program in addressing the wealth constraints of low- and moderate-income homebuyers. However, the spillover effect of such programs on the neighborhood is unknown. This paper estimates the impact of the City of Dallas Mortgage Assistance Program (MAP) on nearby home values using a hedonic model of home sales from 1990 to 2006. We define neighborhoods of 1,000 feet around each sale and estimate the average differences in sales prices between neighborhoods with various numbers of MAP properties before and after their appearance. We find that MAP properties tend to locate in neighborhoods with lower property values; however, unless a concentration of MAP properties forms, the infusion of MAP properties has little detrimental impact on neighboring property values. Moreover, low concentration of MAP properties has a modest positive impact on surrounding property values.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Dallas in its series Working Papers with number 1001.
Date of creation: 2010
Date of revision:
Other versions of this item:
- Wenhua Di & Jielai Ma & James C. Murdoch, 2010. "An analysis of the neighborhood impacts of a mortgage assistance program: A spatial hedonic model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(4), pages 682-697.
- NEP-ALL-2010-08-14 (All new papers)
- NEP-GEO-2010-08-14 (Economic Geography)
- NEP-URE-2010-08-14 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ingrid Gould Ellen & Amy Ellen Schwartz & Ioan Voicu & Michael H. Schill, 2007. "Does federally subsidized rental housing depress neighborhood property values?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(2), pages 257-280.
- Dubin, Robin A., 1992. "Spatial autocorrelation and neighborhood quality," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 433-452, September.
- Deng, Yongheng & Gabriel, Stuart, 2006. "Risk-Based Pricing and the Enhancement of Mortgage Credit Availability among Underserved and Higher Credit-Risk Populations," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(6), pages 1431-1460, September.
- Daniel Aaronson, 1999.
"A note on the benefits of homeownership,"
Working Paper Series
WP-99-23, Federal Reserve Bank of Chicago.
- Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007.
"Experimental Analysis of Neighborhood Effects,"
Econometric Society, vol. 75(1), pages 83-119, 01.
- Richard P. Nathan, 2008. "The role of random assignment in social policy research," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 401-415.
- Richard P. Nathan, 2008. "The role of random assignment in social policy research," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(3), pages 606-606.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Delia Rodriguez).
If references are entirely missing, you can add them using this form.