 |
| The Value Impact of New Residential
Construction and Neighborhood Disinvestment on Residential Sales Price Author: Robert A. Simons, Roberto G. Quercia, and Ivan Maric Start Page: 147 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. |
