Does Federally Subsidized Rental Housing Depress Neighborhood Property Values?

47 Pages Posted: 11 May 2005  

Ingrid Gould Ellen

New York University (NYU) - Robert F. Wagner Graduate School of Public Service

Michael H. Schill

University of Chicago - Law School

Amy Ellen Schwartz

Syracuse University - Center for Policy Research; New York University (NYU) - Institute for Education and Social Policy; National Bureau of Economic Research (NBER)

Ioan Voicu

Office of the Comptroller of the Currency (OCC)

Date Written: March 2005

Abstract

Few communities welcome federally subsidized housing, with one of the most commonly voiced fears being reductions in property values. Yet there is little empirical evidence that subsidized housing depresses neighborhood property values. This paper estimates and compares the neighborhood impacts of a broad range of federally subsidized, rental housing programs, using rich data for New York City and a difference-in-difference specification of a hedonic regression model.

We find that federally subsidized developments have not typically led to reductions in property values and have in fact led to increases in many cases. Impacts are highly sensitive to scale, though patterns vary across programs.

Suggested Citation

Ellen, Ingrid Gould and Schill, Michael H. and Schwartz, Amy Ellen and Voicu, Ioan, Does Federally Subsidized Rental Housing Depress Neighborhood Property Values? (March 2005). NYU, Law and Economics Research Paper No. 05-04; and NYU Law School, Public Law Research Paper No. 05-02. Available at SSRN: https://ssrn.com/abstract=721632 or http://dx.doi.org/10.2139/ssrn.721632

Ingrid Gould Ellen (Contact Author)

New York University (NYU) - Robert F. Wagner Graduate School of Public Service ( email )

The Puck Building
295 Lafayette Street, Second Floor
New York, NY 10012
United States

Michael H. Schill

University of Chicago - Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States
773-702-9495 (Phone)

Amy Ellen Schwartz

Syracuse University - Center for Policy Research ( email )

Syracuse, NY 13244
United States

New York University (NYU) - Institute for Education and Social Policy ( email )

United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ioan Voicu

Office of the Comptroller of the Currency (OCC) ( email )

400 7th Street SW
Washington, DC 20219
United States

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