A Longitudinal Analysis of the Linear and Nonlinear Impacts of Housing Abandonment on Neighborhood Property Values
Public Deposited- Last Modified
- March 20, 2019
- Creator
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Han, Hye-Sung
- Affiliation: College of Arts and Sciences, Department of City and Regional Planning
- Abstract
- This dissertation examines the linear and nonlinear impacts of housing abandonment on neighborhood property values in three separate but related papers. Paper 1: The Impact of Abandoned Properties on Nearby Property Values Previous research has shown that housing abandonment contributes to neighborhood decline by depressing nearby property values. However, most past research estimated the impact of abandonment through cross-sectional analysis without controlling for nearby foreclosures or local housing market trends. Therefore, it remains unclear whether abandoned properties reduce nearby property values or whether abandonment is more common in areas with already lower-valued properties. Prior research also has not explored how the duration of abandonment influences nearby property values. Therefore, to extend the current level of understanding of the impact of abandonment, this research examines the impact of abandoned properties on nearby property values in Baltimore, Maryland, from 1991 to 2010 using longitudinal data sets while simultaneously controlling for both nearby foreclosures and local housing market trends. This research finds that as properties are abandoned for longer periods of time, the impact on nearby property values not only increases in magnitude but also is seen increasingly farther away. Paper 2: Exploring Threshold Effects in the Impact of Housing Abandonment on Nearby Property Values Most prior research examining the impact of distressed (foreclosed, vacant, abandoned) properties on nearby property values has assumed that each additional distressed property has the same marginal effect on nearby property values as the prior distressed property had. In other words, these studies assumed that the impact of distressed properties on nearby property values is linear. Scholars have suggested that there could be threshold effects in the impact of distressed properties, yet no prior research explored this issue. Therefore, this research explores the presence of threshold effects in the impact of housing abandonment on nearby property values in Baltimore, Maryland, from 1991 to 2010. This research finds that the magnitude of the impact of housing abandonment does not increase proportionally to the number of nearby abandoned properties; rather that there is a threshold effect. Specifically, this research finds that the marginal impact on nearby property values increases significantly in magnitude when the number of abandoned properties within 250 ft. increases by more than 2. It also finds that the marginal impact drops significantly when the number of abandoned properties within 250 ft. increases by more than 14. Paper 3: Neighborhood Characteristics and Resiliency to the Impacts of Housing Abandonment Housing abandonment is often disproportionally distributed across a city. Previous research has determined that a number of neighborhood socio-economic and spatial characteristics were associated with housing abandonment. However, past research has not examined the degree to which the impact of housing abandonment varies with specific neighborhood characteristics. Therefore, this research examines whether the impact of housing abandonment on nearby property values varies among different neighborhoods, whether the impact changes at unequal rates over time, and, if so, what accounts for such variability. Focusing on Baltimore neighborhoods between 2001 and 2010, this research found considerable variability in the magnitude of impact of housing abandonment among neighborhoods and that the magnitude of impact changed at unequal rates among neighborhoods over time. Neighborhood crime rate was the strongest predictor of the change in the magnitude of impact of housing abandonment among neighborhoods. Neighborhood unemployment rate, housing unaffordability, proportion of properties with housing violations, and foreclosure rate were also influenced the impact of housing abandonment.
- Date of publication
- December 2013
- DOI
- Resource type
- Rights statement
- In Copyright
- Advisor
- Rohe, William
- Degree
- Doctor of Philosophy
- Graduation year
- 2013
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