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

25 Pages Posted: 14 Sep 2020

See all articles by Jiafeng Chen

Jiafeng Chen

Harvard University, Faculty of Arts and Sciences, Students; Harvard University, Harvard College, 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: July 31, 2020

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 1.5 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 Glaeser, Edward L. and Wessel, David, The (Non-)Effect of Opportunity Zones on Housing Prices (July 31, 2020). Available at SSRN: https://ssrn.com/abstract=3664961 or http://dx.doi.org/10.2139/ssrn.3664961

Jiafeng Chen (Contact Author)

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

Cambridge, MA
United States

Harvard University, Harvard College, Students ( email )

Cambridge, MA
United States

Edward L. Glaeser

Harvard University - Department of Economics ( email )

Littauer Center
Room 315A
Cambridge, MA 02138
United States
617-496-2150 (Phone)
617-496-1722 (Fax)

Brookings Institution

1775 Massachusetts Ave. NW
Washington, DC 20036-2188
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

David Wessel

Brookings Institution ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
51
Abstract Views
253
rank
406,453
PlumX Metrics