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Nonprofit housing investment and local area home values


  • Kelly D. Edmiston


In the wake of the recent mortgage crisis, interest in neighborhood stabilization and redevelopment has shown renewed vigor. Decaying neighborhoods have been part of the urban landscape for decades, but their problems recently have been exacerbated by foreclosed and vacated properties, especially in low- and moderate-income areas. ; Edmiston analyzes the impact of housing investments in low- and moderate-income neighborhoods on neighborhood quality by estimating the effect of that investment on the value of nearby houses. Property values are a good measure of overall neighborhood impacts because they show the willingness of homeowners (or investors) to pay for neighborhood attributes. ; The analysis provides evidence that housing investments in low- and moderate-income neighborhoods generally increase the values of nearby homes, which in turn suggests that the investments engender quality improvements in the neighborhood.

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  • Kelly D. Edmiston, 2012. "Nonprofit housing investment and local area home values," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 67-96.
  • Handle: RePEc:fip:fedker:y:2012:i:qi:p:67-96:n:v.97no.1

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    References listed on IDEAS

    1. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    2. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, June.
    3. James Harvey & Kenneth Spong, 2007. "Home financing in Kansas City and its contribution to low and moderate income neighborhood development," Financial Industry Perspectives, Federal Reserve Bank of Kansas City, issue Feb.
    4. repec:fth:prinin:455 is not listed on IDEAS
    5. Kelly D. Edmiston, 2011. "Low-income housing tax credit developments and neighborhood property conditions," Research Working Paper RWP 11-10, Federal Reserve Bank of Kansas City.
    6. Baum-Snow, Nathaniel & Marion, Justin, 2009. "The effects of low income housing tax credit developments on neighborhoods," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 654-666, June.
    7. Power, Anne, 2008. "Does demolition or refurbishment of old and inefficient homes help to increase our environmental, social and economic viability?," Energy Policy, Elsevier, pages 4487-4501.
    8. Shanti Gamper-Rabindran & Ralph Mastromonaco & Christopher Timmins, 2011. "Valuing the Benefits of Superfund Site Remediation: Three Approaches to Measuring Localized Externalities," NBER Working Papers 16655, National Bureau of Economic Research, Inc.
    9. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    10. John Ries & Tsur Somerville, 2010. "School Quality and Residential Property Values: Evidence from Vancouver Rezoning," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 928-944, November.
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    Cited by:

    1. Johnson, Michael P. & Solak, Senay & Drew, Rachel Bogardus & Keisler, Jeffrey, 2013. "Property value impacts of foreclosed housing acquisitions under uncertainty," Socio-Economic Planning Sciences, Elsevier, vol. 47(4), pages 292-308.

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