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Measuring the impact of community development block grant spending on urban neighborhoods

Author

Listed:
  • George Galster
  • Christopher Walker
  • Christopher Hayes
  • Patrick Boxall
  • Jennifer Johnson

Abstract

Regression analysis of Community Development Block Grant (CDBG) spending in 17 large cities reveals strong statistical associations between spending from 1994 to 1996 and changes in three indicators of neighborhood conditions: the home purchase mortgage approval rate, the median amount of the home purchase loans originated, and the number of businesses. However, there is no consistent association between spending and indicators of subsequent neighborhood change unless CDBG spending is sufficiently spatially targeted that it exceeds a threshold of the sample mean expenditure and is measured relative to the number of poor residents. In addition, associations vary according to neighborhood trajectories before investment and changes in the local economy. Nevertheless, even in the least hospitable contexts—highly concentrated neighborhood poverty, preexisting declines in home values, weak city job growth—our estimates are consistent with the hypothesis that above‐threshold CDBG spending produces significant neighborhood improvements. We discuss the implications for such spatially targeted spending and connections between our work and the emerging literature on the dynamics of poor neighborhoods.

Suggested Citation

  • George Galster & Christopher Walker & Christopher Hayes & Patrick Boxall & Jennifer Johnson, 2004. "Measuring the impact of community development block grant spending on urban neighborhoods," Housing Policy Debate, Taylor & Francis Journals, vol. 15(4), pages 903-934.
    • Handle: RePEc:taf:houspd:v:15:y:2004:i:4:p:903-934
    DOI: 10.1080/10511482.2004.9521526
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    Cited by:

    1. Squires, Graham & Hutchison, Norman, 2021. "Barriers to affordable housing on brownfield sites," Land Use Policy, Elsevier, vol. 102(C).
    2. William J. Collins & Katharine L. Shester, 2013. "Slum Clearance and Urban Renewal in the United States," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 239-273, January.
    3. Hyunjung Kim & Eun Jung Kim, 2021. "Tourism as a Key for Regional Revitalization?: A Quantitative Evaluation of Tourism Zone Development in Japan," Sustainability, MDPI, vol. 13(13), pages 1-24, July.
    4. Rachel Meltzer & Jenny Schuetz, 2012. "Bodegas or Bagel Shops? Neighborhood Differences in Retail and Household Services," Economic Development Quarterly, , vol. 26(1), pages 73-94, February.
    5. Schuetz, Jenny & Spader, Jonathan & Cortes, Alvaro, 2016. "Have distressed neighborhoods recovered? Evidence from the neighborhood stabilization program," Journal of Housing Economics, Elsevier, vol. 34(C), pages 30-48.
    6. Colette Smirniotis & Michael Henderson & Barbara A. Bailey & Rose M. C. Kagawa, 2022. "Crime and Building Rehabilitation or Demolition: A Dose-Response Analysis," IJERPH, MDPI, vol. 19(20), pages 1-19, October.
    7. Aarland, Kristin & Osland, Liv & Gjestland, Arnstein, 2017. "Do area-based intervention programs affect house prices? A quasi-experimental approach," Journal of Housing Economics, Elsevier, vol. 37(C), pages 67-83.
    8. William J. Collins & Katharine Shester, 2010. "The Economic Effects of Slum Clearance and Urban Renewal in the United States," Vanderbilt University Department of Economics Working Papers 1013, Vanderbilt University Department of Economics.
    9. Jennifer Lewis Buell & Kimberly Burnett & Larry Buron & Alvaro Cortes & Michael DiDomenico & Anna Jefferson & Christian Redfearn & Jenny Schuetz & Jonathan Spader & Stephen Whitlow, 2015. "Which Way to Recovery? Housing Market Outcomes and the Neighborhood Stabilization Program," Finance and Economics Discussion Series 2015-4, Board of Governors of the Federal Reserve System (U.S.).

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