Unpacking the impacts of the Low-Income Housing Tax Credit program on nearby property values

Ayoung Woo, Kenneth Joh and Shannon Van Zandt
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Ayoung Woo: Texas A&M University, USA
Kenneth Joh: Texas A&M University, USA
Shannon Van Zandt: Texas A&M University, USA

Urban Studies, 2016, vol. 53, issue 12, 2488-2510

Abstract: Most existing research on the impacts of the Low-Income Housing Tax Credit (LIHTC) on neighbouring property values is limited in terms of providing causal attribution and uncovering nuances in the role of housing market and neighbourhood composition. This article addresses these shortcomings by investigating the impacts of the LIHTC program in Charlotte, North Carolina and Cleveland, Ohio. Levels and trends in housing prices before and after LIHTC developments in neighbourhoods are examined based on parcel-level housing sales data from 1996 to 2007. The Adjusted Interrupted Time Series-Difference in Differences (AITS-DID) model is used to clarify the causal direction of impacts of LIHTC developments. The results show that LIHTC developments have negative impacts in Charlotte, while having upgrading effects in Cleveland. Also, these impacts vary across neighbourhoods’ income heterogeneity. Thus, care should be taken when siting LIHTC developments to minimise negative impacts and enhance its use for community revitalisation across different housing market conditions.

Keywords: housing prices; Low-Income Housing Tax Credit; neighbourhood; neighbourhood heterogeneity; planning; spillover effects; subsidised housing (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:53:y:2016:i:12:p:2488-2510

DOI: 10.1177/0042098015593448

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