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Neighborhood renewal: The decision to renovate or tear down

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  • Munneke, Henry J.
  • Womack, Kiplan S.

Abstract

Renewal at the neighborhood level is the culmination of redevelopment decisions made at the property level. This study examines the decisions of whether to partially redevelop (renovate) or fully redevelop (tear down) existing improvements. Results from the study reveal the primary determinants of the decision, particularly highlighting the importance of structural attributes for renovations, land for teardowns, and location and prior redevelopment activity for both. Additionally, as a test of a proposition from prior studies, major renovations are found to be equivalent to teardown sales, where the property is valued only for the underlying land. The level of expected renovations is also shown to decrease the selling price of properties requiring renovations.

Suggested Citation

  • Munneke, Henry J. & Womack, Kiplan S., 2015. "Neighborhood renewal: The decision to renovate or tear down," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 99-115.
  • Handle: RePEc:eee:regeco:v:54:y:2015:i:c:p:99-115
    DOI: 10.1016/j.regsciurbeco.2015.08.001
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    References listed on IDEAS

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    1. repec:eee:regeco:v:64:y:2017:i:c:p:57-67 is not listed on IDEAS
    2. repec:eee:regeco:v:66:y:2017:i:c:p:16-27 is not listed on IDEAS

    More about this item

    Keywords

    Neighborhood renewal; Redevelopment; Renovation; Tear down; Gentrification;

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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