The Value of a Healthy Home: Lead Paint Remediation and Housing Values

32 Pages Posted: 16 Dec 2015

See all articles by Stephen B. Billings

Stephen B. Billings

University of Colorado - Boulder

Kevin Schnepel

The University of Sydney; IZA

Multiple version iconThere are 2 versions of this paper

Date Written: December 15, 2015

Abstract

The presence of lead paint significantly impairs cognitive and behavioral development, yet little is known about how this residence-specific environmental health risk affects property values. In this paper, we estimate the benefits of lead-paint remediation on housing prices. Using data on all homes that applied to a HUD-funded program in Charlotte, North Carolina, we adopt a difference-in-differences estimator that compares values among remediated properties with those for which an inspection does not identify a lead paint hazard. Results indicate that remediation has large benefits -- a typical investment of $7,291 is associated with a capitalized benefit of $20,323 as well as a reduction in residential turnover.

Keywords: lead exposure, lead paint, lead hazard control, environmental quality, urban environmental health

JEL Classification: Q51, Q52, Q58, R21, R23, R31, I18

Suggested Citation

Billings, Stephen B. and Schnepel, Kevin, The Value of a Healthy Home: Lead Paint Remediation and Housing Values (December 15, 2015). Available at SSRN: https://ssrn.com/abstract=2703883 or http://dx.doi.org/10.2139/ssrn.2703883

Stephen B. Billings (Contact Author)

University of Colorado - Boulder ( email )

Leeds School of Business
Koelbel Building
Boulder, CO US 80309
United States

Kevin Schnepel

The University of Sydney ( email )

University of Sydney
Sydney, NC NSW 2006
Australia

IZA ( email )

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