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The Effect of Group Homes on Neighborhood Property Values


  • Peter F. Colwell
  • Carolyn A. Dehring
  • Nicholas A. Lash


The majority of studies examining the impact of group homes on neighborhood property values have found that group homes do not adversely effect property values. In our study of seven group homes neighborhoods in DuPage County, Illinois, we find that properties which are proximate to group homes experience a decline in value following the announcement of a group home's pending establishment. In our analysis, observations across time and space are incorporated into a format that is similar to an event study. Our model is the first in this literature to accommodate different price levels and appreciation rates across neighborhoods.

Suggested Citation

  • Peter F. Colwell & Carolyn A. Dehring & Nicholas A. Lash, 2000. "The Effect of Group Homes on Neighborhood Property Values," Land Economics, University of Wisconsin Press, vol. 76(4), pages 615-637.
  • Handle: RePEc:uwp:landec:v:76:y:2000:i:4:p:615-637

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    Cited by:

    1. Andrew Narwold & Jonathan Sandy & Charles Tu, 2008. "Historic Designation and Residential Property Values," International Real Estate Review, Asian Real Estate Society, vol. 11(1), pages 83-95.
    2. Carolyn A. Dehring & Craig A. Depken & Michael R. Ward, 2007. "The Impact Of Stadium Announcements On Residential Property Values: Evidence From A Natural Experiment In Dallas-Fort Worth," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 627-638, October.
    3. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Impact of sports arenas on land values: evidence from Berlin," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 205-227, April.
    4. Immergluck, Dan, 2007. "Large-Scale Redevelopment Initiatives and Home Values: The Case of the Atlanta Beltline Project," MPRA Paper 8613, University Library of Munich, Germany.
    5. repec:asg:wpaper:1004 is not listed on IDEAS
    6. Cunningham, Jamein P., 2016. "An evaluation of the Federal Legal Services Program: Evidence from crime rates and property values," Journal of Urban Economics, Elsevier, vol. 92(C), pages 76-90.
    7. Gabriel Ahlfeldt, 2007. "If Alonso Was Right: Accessibility as Determinant for Attractiveness of Urban Location," Working Papers 012, Chair for Economic Policy, University of Hamburg.
    8. Leigh L. Linden & Jonah E. Rockoff, 2006. "There Goes the Neighborhood? Estimates of the Impact of Crime Risk on Property Values From Megan's Laws," NBER Working Papers 12253, National Bureau of Economic Research, Inc.
    9. Gabriel Ahlfeldt & Wolfgang Maennig, 2008. "Award-Winning Architecture and Urban Revitalization: The Case of “Olympic Arenas” in Berlin-Prenzlauer Berg," Working Papers 0814, International Association of Sports Economists;North American Association of Sports Economists.
    10. Taggert J. Brooks & Brad R. Humphreys & Adam Nowak, 2016. "Strip Clubs, “Secondary Effects,†and Residential Property Prices," Working Papers 16-17, Department of Economics, West Virginia University.
    11. Charles C. Tu, 2005. "How Does a New Sports Stadium Affect Housing Values? The Case of FedEx Field," Land Economics, University of Wisconsin Press, vol. 81(3).

    More about this item

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General


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