Have Distressed Neighborhoods Recovered? Evidence from the Neighborhood Stabilization Program

FEDS Working Paper No. 2015-016

http://dx.doi.org/10.17016/FEDS.2015.016

50 Pages Posted: 22 Apr 2015

See all articles by Jenny Schuetz

Jenny Schuetz

Brookings Institution

Jonathan Spader

Harvard University - Joint Center for Housing Studies

Alvaro Cortes

Abt Associates, Inc.

Multiple version iconThere are 2 versions of this paper

Date Written: March 4, 2015

Abstract

During the 2007-2009 housing crisis, concentrations of foreclosed and vacant properties created severe blight in many cities and neighborhoods. The federal Neighborhood Stabilization Program (NSP) was established to help mitigate distress in hard-hit areas by funding the rehabilitation or demolition of troubled properties. This paper analyzes housing market changes in areas that received investments during the second round of NSP funding, focusing on seven large urban counties. Grantees used NSP to invest in census tracts with high rates of distressed and vacancy properties, and tracts that had previously received other housing subsidies. The median NSP tract received quite sparse investment, relative to the overall housing stock and the initial levels of distress. Analysis of housing market outcomes indicates the recovery has been uneven across counties and neighborhoods. In a few counties, there is some evidence that NSP2 activity is correlated with improved housing outcomes.

Keywords: Foreclosures, Neighborhood revitalization, economic recovery, federal housing policy, housing markets

JEL Classification: R1, R3, H4, H7

Suggested Citation

Schuetz, Jenny and Spader, Jonathan and Cortes, Alvaro, Have Distressed Neighborhoods Recovered? Evidence from the Neighborhood Stabilization Program (March 4, 2015). FEDS Working Paper No. 2015-016. Available at SSRN: https://ssrn.com/abstract=2596598 or http://dx.doi.org/10.2139/ssrn.2596598

Jenny Schuetz (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Jonathan Spader

Harvard University - Joint Center for Housing Studies ( email )

1033 Massachusetts Ave, 5th Floor
Cambridge, MA 02138
United States

Alvaro Cortes

Abt Associates, Inc. ( email )

55 Wheeler Street
Cambridge, MA 02138-1168
United States

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