Financing brownfield redevelopment and housing market dynamics: Evidence from Connecticut

Gianluca Mattarocci and Gibilaro Lucia

ERES from European Real Estate Society (ERES)

Abstract: Brownfield redevelopment projects are frequently perceived as riskier with respect to greenfield investment and the financing opportunities may be more limited and more expensive. Different financial aid projects have been developed for supporting regeneration projects and empirical evidence had shown that all the buildings near the intervention area will benefit from a price increase once the brownfield project is complete.The paper considers the Connecticut market and the evaluates the characteristics of the brownfield projects that had access to a financial aid program (loan or grant) and the impact of the regeneration process on the liquidity of the housing market and the gap between the price and the appraisal value of the residential unit. Results show that the financial aid determines a lower concentration because of a wider urban area that will be available to satisfy housing demand and the average price increases in the surrounding area and it will be more consistent with appraisal valuation.

Keywords: Brownfield; housing market; Regeneration project; Spillover effect (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2022-01-01
New Economics Papers: this item is included in nep-ppm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:2022_14

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