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Substance Use Disorder Treatment Centers and Residential Property Values

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  • Brady P. Horn
  • Aakrit Joshi
  • Johanna Catherine Maclean

Abstract

Substance use disorders (SUDs) are a major social concern. There is an extensive economic literature estimating the social costs associated with SUDs in terms of health care, labor market outcomes, and crime. However, beyond anecdotal claims that SUD treatment centers (SUDTCs), settings in which patients receive care, reduce residential property values, there is little empirical work on this question. We apply a spatial difference-in-differences model and administrative data to test this relationship. We find that SUDTCs sort into lower-value areas, but once SUDTC selection is addressed, we find no evidence that SUDTCs influence residential property values.

Suggested Citation

  • Brady P. Horn & Aakrit Joshi & Johanna Catherine Maclean, 2021. "Substance Use Disorder Treatment Centers and Residential Property Values," American Journal of Health Economics, University of Chicago Press, vol. 7(2), pages 185-221.
    • Handle: RePEc:ucp:amjhec:doi:10.1086/713033
    DOI: 10.1086/713033
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    Cited by:

    1. Henry Penikas, 2021. "Review of Bank of Russia – NES Workshop 'Identification and Measurement of Macroprudential Policies Effects'," Russian Journal of Money and Finance, Bank of Russia, vol. 80(3), pages 94-104, September.
    2. John Brownstein & Jonathan H. Cantor & Benjamin Rader & Kosali I. Simon & Christopher M. Whaley, 2022. "If You Build it, Will They Vaccinate? The Impact of COVID-19 Vaccine Sites on Vaccination Rates and Outcomes," NBER Working Papers 30429, National Bureau of Economic Research, Inc.
    3. Ashley C. Bradford & Johanna Catherine Maclean, 2024. "Evictions and psychiatric treatment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 43(1), pages 87-125, January.
    4. Liang, Jian & Alexeev, Sergey, 2023. "Harm reduction or amplification? The adverse impact of a supervised injection room on housing prices," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    5. Deza, Monica & Maclean, Johanna Catherine & Solomon, Keisha, 2022. "Local access to mental healthcare and crime," Journal of Urban Economics, Elsevier, vol. 129(C).
    6. Elster, Yael & Zussman, Noam, 2024. "Minorities and property values: Evidence from residential buildings in Israel," Journal of Urban Economics, Elsevier, vol. 141(C).

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