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The Value of a Healthy Home: Lead Paint Remediation and Housing Values

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  • Billings, Stephen B.
  • Schnepel, Kevin

Abstract

The presence of lead paint significantly impairs cognitive and behavioral development, yet little is known about how this residence-specific environmental health risk affects property values. In this paper, we estimate the benefits of lead-paint remediation on housing prices. Using data on all homes that applied to a HUD-funded program in Charlotte, North Carolina, we adopt a difference-in-differences estimator that compares values among remediated properties with those for which an inspection does not identify a lead paint hazard. Results indicate that remediation has large benefits—a typical investment of $7,291 is associated with a capitalized benefit of $20,323 as well as a reduction in residential turnover.

Suggested Citation

  • Billings, Stephen B. & Schnepel, Kevin, 2015. "The Value of a Healthy Home: Lead Paint Remediation and Housing Values," Working Papers 2015-23, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2015-23
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    Cited by:

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    2. Juan Palacios & Piet Eichholtz & Nils Kok & Erdal Aydin, 2021. "The impact of housing conditions on health outcomes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1172-1200, December.
    3. Adam Theising, 2019. "Lead Pipes, Prescriptive Policy and Property Values," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1355-1382, November.
    4. Deiana, Claudio & Giua, Ludovica, 2023. "This site is closed! The effect of decommissioning mining waste facilities on mortality in the long run," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    5. Lindgren, Samuel, 2021. "A sound environment: health effects of traffic noise mitigation," Working Papers 2021:10, Swedish National Road & Transport Research Institute (VTI).
    6. Syed Hasan & Odmaa Narantungalag, & Martin Berka, 2022. "No pain, no gain? Mining pollution and morbidity," Discussion Papers 2203, School of Economics and Finance, Massey University, New Zealand.
    7. Gazze, Ludovica, 2021. "The price and allocation effects of targeted mandates: Evidence from lead hazards," Journal of Urban Economics, Elsevier, vol. 123(C).
    8. Künn, Steffen & Palacios, Juan, 2023. "Health Implications of Building Retrofits: Evidence from a Population-Wide Weatherization Program," IZA Discussion Papers 15986, Institute of Labor Economics (IZA).
    9. Ortega, Francesc & Taṣpınar, Süleyman, 2018. "Rising sea levels and sinking property values: Hurricane Sandy and New York’s housing market," Journal of Urban Economics, Elsevier, vol. 106(C), pages 81-100.
    10. Steffen Künn & Juan Palacios, 2023. "Health Implications of Building Retrofits: Evidence from a Population-Wide Weatherization Program," SOEPpapers on Multidisciplinary Panel Data Research 1186, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    Keywords

    lead exposure; lead paint; lead hazard control; environmental quality; urban environmental health; difference-in-differences;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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