The Value Impact of Neighborhood Transition on Residential Sales Price
Journal of Real Estate Research
Center for Housing Research and Policy
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.
Simons, Robert A.; Maric, Ivan; and Querica, Roberto, "The Value Impact of Neighborhood Transition on Residential Sales Price" (1998). Urban Publications. 0 1 2 3 27.
Simons, R. A., Quercia, R, G., Maric, I. (1998) The Value Impact of New Residential Construction and Neighborhood Disinvestment on Residential Sales Price. The Journal of Real Estate Research, 15 (2), 147-162.
(c) 1998 American Real Estate Society