IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/94193.html
   My bibliography  Save this paper

The Impact of Land Bank Demolitions on Property Values

Author

Listed:
  • Niemesh, Gregory
  • Jones-Farmer, L. Allison
  • Hart, Joseph
  • Holmes, William
  • Soundappan, Nathan

Abstract

A modern land bank is a public entity that purchases and demolishes blighted housing to remove negative externalities. We estimate the impact of land bank demolitions on surrounding property values for a medium-sized municipality. Using a spatial correction hedonic model of house prices, we find modest increases in sales prices associated with land bank activity in a neighborhood. In general, the impact estimates we find are smaller than those found in the literature for a much larger metropolitan area. We speculate on the cause of this difference in findings.

Suggested Citation

  • Niemesh, Gregory & Jones-Farmer, L. Allison & Hart, Joseph & Holmes, William & Soundappan, Nathan, 2019. "The Impact of Land Bank Demolitions on Property Values," MPRA Paper 94193, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:94193
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/94193/1/MPRA_paper_94193.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stephen Gibbons & Henry G. Overman, 2012. "Mostly Pointless Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 172-191, May.
    2. 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.
    3. David M. Brasington & Diane Hite, 2005. "Demand for Environmental Quality: A Spatial Hedonic Approach," Departmental Working Papers 2005-08, Department of Economics, Louisiana State University.
    4. Edward L. Glaeser & Joseph Gyourko, 2005. "Urban Decline and Durable Housing," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 345-375, April.
    5. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    6. Brasington, David M. & Hite, Diane, 2005. "Demand for environmental quality: a spatial hedonic analysis," Regional Science and Urban Economics, Elsevier, vol. 35(1), pages 57-82, January.
    7. Solmaria Halleck Vega & J. Paul Elhorst, 2015. "The Slx Model," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 339-363, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tian, Jinfang & Yu, Longguang & Xue, Rui & Zhuang, Shan & Shan, Yuli, 2022. "Global low-carbon energy transition in the post-COVID-19 era," Applied Energy, Elsevier, vol. 307(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mei, Yingdan & Hite, Diane & Sohngen, Brent, 2017. "Demand for urban tree cover: A two-stage hedonic price analysis in California," Forest Policy and Economics, Elsevier, vol. 83(C), pages 29-35.
    2. Geoffrey Meen & Christian Nygaard, 2011. "Local Housing Supply and the Impact of History and Geography," Urban Studies, Urban Studies Journal Limited, vol. 48(14), pages 3107-3124, November.
    3. Juan Manuel Aristizábal & Gustavo A. García, 2021. "Regional economic growth and convergence: The role of institutions and spillover effects in Colombia," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1146-1161, August.
    4. Anping Chen & Marlon Boarnet & Mark Partridge & Wenjie Wu & Guanpeng Dong, 2014. "Valuing The “Green” Amenities In A Spatial Context," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 569-585, September.
    5. Gabriel S. Lee & Stefanie Braun, 2021. "Agglomeration Spillover Effects in German Land and House Prices at the City and County Levels," Working Papers 207, Bavarian Graduate Program in Economics (BGPE).
    6. Herrera Gómez, Marcos, 2017. "Fundamentos de Econometría Espacial Aplicada [Fundamentals of Applied Spatial Econometrics]," MPRA Paper 80871, University Library of Munich, Germany.
    7. Liv Osland & Inge Thorsen, 2013. "Spatial Impacts, Local Labour Market Characteristics and Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 50(10), pages 2063-2083, August.
    8. PHOLO BALA, Alain & PEETERS, Dominique & THOMAS, Isabelle, 2014. "Spatial issues on a hedonic estimation of rents in Brussels," LIDAM Reprints CORE 2629, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Celia Bilbao-Terol, 2009. "Impacts of an Iron and Steel Plant on Residential Property Values," European Planning Studies, Taylor & Francis Journals, vol. 17(9), pages 1421-1436, September.
    10. Frank Davenport, 2017. "Estimating standard errors in spatial panel models with time varying spatial correlation," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 155-177, March.
    11. Holly, Sean & Pesaran, M. Hashem & Yamagata, Takashi, 2010. "A spatio-temporal model of house prices in the USA," Journal of Econometrics, Elsevier, vol. 158(1), pages 160-173, September.
    12. Demidova, Olga, 2021. "Methods of spatial econometrics and evaluation of government programs effectiveness," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 64, pages 107-134.
    13. Borsky, Stefan & Kalkschmied, Katja, 2019. "Corruption in space: A closer look at the world's subnations," European Journal of Political Economy, Elsevier, vol. 59(C), pages 400-422.
    14. Ricardo B. Politi & Enlinson Mattos & Eric Picin, 2021. "Public input and business tax competition in local communities in Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 799-824, December.
    15. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    16. Fouquet, Roger, 2012. "The demand for environmental quality in driving transitions to low-polluting energy sources," Energy Policy, Elsevier, vol. 50(C), pages 138-149.
    17. Osseni, Abdel & Bareille, Francois & DUPRAZ, Pierre, 2018. "Decoupling Values Of Agricultural Externalities According To Scale: A Spatial Hedonic Approach In Brittany," 2018 Annual Meeting, August 5-7, Washington, D.C. 273998, Agricultural and Applied Economics Association.
    18. Holly, Sean & Hashem Pesaran, M. & Yamagata, Takashi, 2011. "The spatial and temporal diffusion of house prices in the UK," Journal of Urban Economics, Elsevier, vol. 69(1), pages 2-23, January.
    19. Simon K. C. Cheung & Tommy K. Y. Cheung, 2022. "Mixed membership nearest neighbor model with feature difference," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(8), pages 1578-1594, December.
    20. Marina Di Giacomo & Wolfgang Nagl & Philipp Steinbrunner, 2022. "Trump Digs Votes - The Effect of Trump's Coal Campaign on the Presidential Ballot in 2016," CESifo Working Paper Series 9817, CESifo.

    More about this item

    Keywords

    Land bank; spatial econometrics; property values;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:94193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.