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

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Listed:
  • Jiafeng Chen
  • Edward L. Glaeser
  • David Wessel

Abstract

Will the Opportunity Zone program, America’s largest new place-based policy in decades, generate neighborhood change? We compare single-family housing price growth in Opportunity Zones with price growth in areas that were eligible but not included in the program. We also compare Opportunity Zones to their nearest geographic neighbors. All estimates rule out price impacts greater than 1.3 percentage points with 95% confidence, suggesting that, so far, home buyers don’t believe that this subsidy will generate major neighborhood change. Opportunity Zone status reduces prices in areas with little employment, perhaps because buyers think that subsidizing new investment will increase housing supply.

Suggested Citation

  • Jiafeng Chen & Edward L. Glaeser & David Wessel, 2019. "The (Non-) Effect of Opportunity Zones on Housing Prices," NBER Working Papers 26587, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26587
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    References listed on IDEAS

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    1. Matias Busso & Patrick Kline, 2008. "Do Local Economic Development Programs Work? Evidence from the Federal Empowerment Zone Program," Cowles Foundation Discussion Papers 1639, Cowles Foundation for Research in Economics, Yale University.
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    Citations

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    Cited by:

    1. Sylvain Chareyron & Florence Goffette-Nagot & Lucie Letrouit, 2019. "Impacts of a French urban renewal program on local housing markets," Post-Print halshs-02353718, HAL.
    2. Freedman, Matthew & Khanna, Shantanu & Neumark, David, 2023. "JUE Insight: The Impacts of Opportunity Zones on Zone Residents," Journal of Urban Economics, Elsevier, vol. 133(C).
    3. James Alm & Trey Dronyk-Trosper & Sean Larkin, 2021. "In the land of OZ: designating opportunity zones," Public Choice, Springer, vol. 188(3), pages 503-523, September.
    4. Jiafeng Chen & Edward Glaeser & David Wessel, 2022. "JUE Insight: The (Non-)Effect of Opportunity Zones on Housing Prices," Papers 2204.06967, arXiv.org.
    5. Minjee Kim, 2022. "How do tax-based revitalisation policies affect urban property development? Evidence from Bronzeville, Chicago," Urban Studies, Urban Studies Journal Limited, vol. 59(5), pages 1031-1047, April.
    6. James Alm & Trey Dronyk‐Trosper & Sean Larkin, 2024. "Do opportunity zones create opportunities? The impact of opportunity zones on real estate prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 52(1), pages 214-238, January.
    7. Ashesh Rambachan & Jonathan Roth, 2020. "Design-Based Uncertainty for Quasi-Experiments," Papers 2008.00602, arXiv.org, revised Jun 2025.
    8. Chen, Jiafeng & Glaeser, Edward & Wessel, David, 2023. "JUE Insight: The (non-)effect of opportunity zones on housing prices," Journal of Urban Economics, Elsevier, vol. 133(C).
    9. Cameron LAPOINT & Shogo SAKABE, 2021. "Place-Based Policies and the Geography of Corporate Investment," Discussion papers 21059, Research Institute of Economy, Trade and Industry (RIETI).
    10. Margaret Frank, Mary & Hoopes, Jeffrey L. & Lester, Rebecca, 2022. "What determines where opportunity knocks? Political affiliation in the selection of Opportunity Zones," Journal of Public Economics, Elsevier, vol. 206(C).

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    More about this item

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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