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Land Bank 2.0: An Empirical Evaluation

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  • Stephan Whitaker
  • Thomas J. Fitzpatrick IV

Abstract

Cuyahoga County created a land bank in 2009 explicitly intended to acquire low-value properties, mitigate blighted housing, help stabilize neighborhoods, and slow the decline of property values. This paper evaluates the effectiveness of the land bank by estimating spatially-corrected hedonic price models using sales near the land bank homes. Homes that sold within 500 feet of a property that would be acquired by the land bank in the next six months show a 3 to 5 percent discount versus observationally similar homes. Homes that sold within 500 feet of a land bank owned home sold at prices approximately 5 percent higher than similar homes. A land bank demolition appears to have a positive externality, which adds 9 percent to the value of a nearby home sale. These results are consistent through a wide variety of specifications, but they are not measured precisely enough to be statistically significant.
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  • Stephan Whitaker & Thomas J. Fitzpatrick IV, 2016. "Land Bank 2.0: An Empirical Evaluation," Journal of Regional Science, Wiley Blackwell, vol. 56(1), pages 156-175, January.
    • Handle: RePEc:bla:jregsc:v:56:y:2016:i:1:p:156-175
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    File URL: http://hdl.handle.net/10.1111/jors.2016.56.issue-1
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    Cited by:

    1. Gregory T. Niemesh & L. Allison Jones-Farmer & Joseph Hart & William Holmes & Nathan Soundappan, 2020. "The Impact of Land Bank Demolitions on Property Values," Economics Bulletin, AccessEcon, vol. 40(1), pages 217-233.
    2. Chin, Jae Teuk, 2021. "The shifting role of public–private partnerships in vacant property redevelopment," Land Use Policy, Elsevier, vol. 105(C).

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