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JUE Insight: The (Non-)Effect of Opportunity Zones on Housing Prices

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  • Jiafeng Chen
  • Edward Glaeser
  • David Wessel

Abstract

Will the Opportunity Zones (OZ) program, America's largest new place-based policy in decades, generate neighborhood change? We compare single-family housing price growth in OZs with price growth in areas that were eligible but not included in the program. We also compare OZs to their nearest geographic neighbors. Our most credible estimates rule out price impacts greater than 0.5 percentage points with 95% confidence, suggesting that, so far, home buyers don't believe that this subsidy will generate major neighborhood change. OZ status reduces prices in areas with little employment, perhaps because buyers think that subsidizing new investment will increase housing supply. Mixed evidence suggests that OZs may have increased residential permitting.

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  • Jiafeng Chen & Edward Glaeser & David Wessel, 2022. "JUE Insight: The (Non-)Effect of Opportunity Zones on Housing Prices," Papers 2204.06967, arXiv.org.
    • Handle: RePEc:arx:papers:2204.06967
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    References listed on IDEAS

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    Cited by:

    1. Atkins, Rachel M.B. & Hernández-Lagos, Pablo & Jara-Figueroa, Cristian & Seamans, Robert, 2023. "JUE Insight: What is the impact of opportunity zones on job postings?," Journal of Urban Economics, Elsevier, vol. 136(C).
    2. Pang, Jindong & Shen, Shulin & Zhou, Ningzhe, 2024. "The Spillover effect of government relocations on economic growth in Chinese cities," Journal of Economic Behavior & Organization, Elsevier, vol. 222(C), pages 104-122.
    3. Xiangou Deng & Zhaohui Li & Michael J. Seiler & Hua Sun, 2024. "Market Strength and Brokerage Choice in Residential Housing," The Journal of Real Estate Finance and Economics, Springer, vol. 69(4), pages 741-777, November.
    4. Tim Bartik, 2023. "Seize the Time: Needed Research on Local Economic Development in an Era of Increased Attention to Problems of Place," Economic Development Quarterly, , vol. 37(1), pages 7-13, February.

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