An Analysis of the Neighborhood Impacts of the Mortgage Assistance Program in Dallas
Networks Financial Institute Working Paper No. 2009-WP-05
29 Pages Posted: 17 Jul 2009 Last revised: 10 Sep 2009
Date Written: June 1, 2009
Down payment or closing cost assistance is a commonly used and effective program in addressing the wealth constraints of underserved homebuyers. This paper estimates the impact of the city of Dallas Mortgage Assistance Program (MAP) on neighborhood home values. We define neighborhoods for each sale based on distance from MAP properties, and estimate the difference-in-difference (DID) in home prices between neighborhoods with various numbers of MAP before and after MAP sales. We find that while MAP properties tend to locate in neighborhoods with generally lower property values, the infusion of MAP has no detrimental impact on neighboring property values overall.
Keywords: down payment assistance, affordable housing, neighborhood effects.
JEL Classification: R1, H5
Suggested Citation: Suggested Citation