The Impact of Land Bank Demolitions on Property Values

Niemesh, Gregory and Jones-Farmer, L. Allison and Hart, Joseph and Holmes, William and Soundappan, Nathan (2019): The Impact of Land Bank Demolitions on Property Values.

Abstract

A modern land bank is a public entity that purchases and demolishes blighted housing to remove negative externalities. We estimate the impact of land bank demolitions on surrounding property values for a medium-sized municipality. Using a spatial correction hedonic model of house prices, we find modest increases in sales prices associated with land bank activity in a neighborhood. In general, the impact estimates we find are smaller than those found in the literature for a much larger metropolitan area. We speculate on the cause of this difference in findings.

• Item Type: MPRA Paper
• Language: English
• Keywords: Land bank, spatial econometrics, property values
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R38 - Government Policy

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