The Value Impact of New Residential Construction and Neighborhood Disinvestment on Residential Sales Price

Robert A. Simons (), Roberto G. Quercia () and Ivan Maric
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Robert A. Simons: Levin College of Urban Affairs Cleveland State University Cleveland, Ohio 44115, http://urban.csuohio.edu/
Roberto G. Quercia: Department of City and Regional Planning University of North Carolina at Chapel Hill Chapel Hill, North Carolina 27599, http://www.unc.edu/depts/dcrpweb/
Ivan Maric: Levin College of Urban Affairs Cleveland State University Cleveland, Ohio 44115, http://urban.csuohio.edu/

Journal of Real Estate Research, 1998, vol. 15, issue 2, pages 147-162

Abstract: The topic of neighborhood redevelopment is central to residential appraisal and the lending process. We examine both the effect of neighborhood upgrading and decline, captured by subsidized new residential construction and sustained property tax delinquency respectively, on the sales price of one-to-two family homes. The research uses a two stage hedonic price model of 12,100 individual residential sales in Cleveland, Ohio during 1992-94. Results show a significant positive effect of $670 on the sales price of existing housing for each new unit built in a one-to-two block area. A decrease in sales price of $778 is associated with a 1% increase in the tax delinquency rate. The spatial variability of these effects is also explored.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1998
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