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An Analysis of the Neighborhood Impacts of the Mortgage Assistance Program in Dallas

Author

Listed:
  • Wenhua Di
  • Jeilai Ma
  • James C. Murdoch

Abstract

Down-payment or closing cost assistance is a commonly used and effective program in addressing the wealth constraints of underserved homebuyers. This paper estimates the impact of the city of Dallas Mortgage Assistance Program (MAP) on neighborhood home values. We define neighborhoods for each sale based on distance from MAP properties, and estimate the difference-in-difference (DID) in home prices between neighborhoods with various numbers of MAP before and after MAP sales. We find that while MAP properties tend to locate in neighborhoods with generally lower property values, the infusion of MAP has no detrimental impact on neighboring property values overall.

Suggested Citation

  • Wenhua Di & Jeilai Ma & James C. Murdoch, 2009. "An Analysis of the Neighborhood Impacts of the Mortgage Assistance Program in Dallas," NFI Working Papers 2009-WP-05, Indiana State University, Scott College of Business, Networks Financial Institute.
    • Handle: RePEc:nfi:nfiwps:2009-wp-05
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    File URL: http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2009-WP-05_Di_Ma_Murdoch.pdf
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    References listed on IDEAS

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    1. Aaronson, Daniel, 2000. "A Note on the Benefits of Homeownership," Journal of Urban Economics, Elsevier, vol. 47(3), pages 356-369, May.
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    More about this item

    Keywords

    down-payment assistance; affordable housing; neighborhood effects;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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