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Impacts of Hospital Closures on Rural Housing Values in Illinois

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  • Miller, Cristina
  • Nikaj, Silda
  • Pender, John

Abstract

Rural hospitals may be an attractive amenity for retirees, retirement communities, and firms. In many rural communities, hospitals are often one of the largest employers. When a rural hospital closes, this is expected to reduce housing values, although no studies to date have investigated this relationship. As a pilot study for future research, we estimate the impact of White Community Medical Center’s (located in Carmi, Illinois) closure in December 2005 on local housing values, using a repeat sales estimator. We find that the change in housing values for houses that sold before and after the closure was not statistically significantly affected by the distance from the house to the closed hospital. These results are limited by a small number of repeat sales in White County; further research with data from other states is needed to determine the impact of rural hospital closures on housing values.

Suggested Citation

  • Miller, Cristina & Nikaj, Silda & Pender, John, 2015. "Impacts of Hospital Closures on Rural Housing Values in Illinois," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205546, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205546
    DOI: 10.22004/ag.econ.205546
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    References listed on IDEAS

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    1. Mayer, Jonathan D. & Kohlenberg, Elizabeth R. & Sieferman, G. Eric & Rosenblatt, Roger A., 1987. "Patterns of rural hospital closure in the United States," Social Science & Medicine, Elsevier, vol. 24(4), pages 327-334, January.
    2. Buchmueller, Thomas C. & Jacobson, Mireille & Wold, Cheryl, 2006. "How far to the hospital?: The effect of hospital closures on access to care," Journal of Health Economics, Elsevier, vol. 25(4), pages 740-761, July.
    3. McMillen, Daniel P., 2008. "Changes in the distribution of house prices over time: Structural characteristics, neighborhood, or coefficients?," Journal of Urban Economics, Elsevier, vol. 64(3), pages 573-589, November.
    4. McMillen, Daniel P., 2003. "The return of centralization to Chicago: using repeat sales to identify changes in house price distance gradients," Regional Science and Urban Economics, Elsevier, vol. 33(3), pages 287-304, May.
    5. Daniel P. McMillen, 2012. "Repeat Sales as a Matching Estimator," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 40(4), pages 743-771, December.
    6. McLafferty, Sara, 1982. "Neighborhood characteristics and hospital closures : A comparison of the public, private and voluntary hospital systems," Social Science & Medicine, Elsevier, vol. 16(19), pages 1667-1674, January.
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    Cited by:

    1. Manlove, Jacob & Whitacre, Brian, 2017. "Short-Term Economic Impact of Rural Hospital Closures," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252716, Southern Agricultural Economics Association.

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    Keywords

    Community/Rural/Urban Development;

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