The (Non-) Effect of Opportunity Zones on Housing Prices

25 Pages Posted: 31 Dec 2019 Last revised: 23 Feb 2023

See all articles by Jiafeng Chen

Jiafeng Chen

Harvard University, Harvard College, Students; Harvard University, Faculty of Arts and Sciences, Students

Edward L. Glaeser

Harvard University - Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

David Wessel

Brookings Institution

Multiple version iconThere are 2 versions of this paper

Date Written: December 2019

Abstract

Will the Opportunity Zone program, America’s largest new place-based policy in decades, generate neighborhood change? We compare single-family housing price growth in Opportunity Zones with price growth in areas that were eligible but not included in the program. We also compare Opportunity Zones to their nearest geographic neighbors. All estimates rule out price impacts greater than 1.3 percentage points with 95% confidence, suggesting that, so far, home buyers don’t believe that this subsidy will generate major neighborhood change. Opportunity Zone status reduces prices in areas with little employment, perhaps because buyers think that subsidizing new investment will increase housing supply.

Suggested Citation

Chen, Jiafeng and Chen, Jiafeng and Glaeser, Edward L. and Wessel, David, The (Non-) Effect of Opportunity Zones on Housing Prices (December 2019). NBER Working Paper No. w26587, Available at SSRN: https://ssrn.com/abstract=3511297

Jiafeng Chen (Contact Author)

Harvard University, Harvard College, Students ( email )

Cambridge, MA
United States

Harvard University, Faculty of Arts and Sciences, Students ( email )

Cambridge, MA
United States

Edward L. Glaeser

Harvard University - Department of Economics ( email )

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David Wessel

Brookings Institution ( email )

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