Housing & Community Development

Economics of Housing Market Segmentation

Economics of Housing Market Segmentation
International Encyclopedia of Housing and Home

Ingrid Ellen
01/01/2012

Over the years, economists have debated the extent to which the assumption of a single housing market in a city or region is reasonable. Some have argued that in estimating housing prices, the housing market should be stratified into a series of separate submarkets, divided by structure type, neighbourhood, and potentially race and ethnicity. Still, even to the extent that these submarkets are distinct, they are clearly related. Households exhibit some flexibility in their choices, and prices in one sector clearly affect demand in other sectors to some degree. The debate about segmentation is really about degree – about how large the cross-price elasticity is between different types of housing.

Nonprofit Exemptions and Homeowner Property Tax Burden

Nonprofit Exemptions and Homeowner Property Tax Burden
Public Finance and Management 12(1): 21-50.

Calabrese, Thad, and Deborah A. Carroll
01/01/2012

This paper examines the question of whether there is any correlation between the prevalence of nonprofit organizations with property, plant, and equipment exempt from property taxation and the property tax burden for homeowners. Data from the Tax Foundation and Internal Revenue Service was used to analyze general-purpose local governments within larger counties (populations greater than 65,000) in the United States for years 2005 and 2006. Several econometric specifications were used to estimate homeowner property tax burden as a function of the value of nonprofit fixed assets, government tax structure characteristics, and a series of control variables. Our estimates suggest that county geographies with greater presence of nonprofits tend to have higher homeowner tax burdens on average. Specifically, the value of nonprofit tax-exempt fixed assets within a county geography that is 10% above the mean of $15.4 million is generally associated with a median property tax paid by homeowners as a % of household income that is between 0.0009% and 0.0154% above the mean or between $2 and $24 higher on average. The median property tax paid as a % of homeowner’s home value would be between 0.0006% and 0.0069% above the mean or between $3 and $12 higher on average. Overall, we find a strong, positive correlation between nonprofit fixed assets and property tax burden for homeowners at the local level.

Pathways to Integration: Examining Changes in the Prevalence of Racially Integrated Neighborhoods

Pathways to Integration: Examining Changes in the Prevalence of Racially Integrated Neighborhoods
Cityscape: A Journal of Policy Development and Research 14(3)33-53

Ellen, Ingrid, Katherine O’Regan and Keren Horn
01/01/2012

Few researchers have studied integrated neighborhoods, yet these neighborhoods offer an important window into broader patterns of segregation.  We explore changes in racial integration in recent decades using decennial census tract data from 1990, 2000, and 2010.  We begin by examining changes in the prevalence of racially integrated neighborhoods and find significant growth in the presence of integrated neighborhoods during this time period, with the share of metropolitan neighborhoods that are integrated increasing from just under 20 percent to just over 30 percent.  We then shed light on the pathways through which these changes have occurred.  We find both a small increase in the number of neighborhoods becoming integrated for the first time during this period and a more sizable increase in the share of integrated neighborhoods that remained integrated.  Finally, we offer insights about which neighborhoods become integrated in the first place and which remain stably integrated over time.

Does Losing Your Home Mean Losing Your School? Effects of Foreclosure on the School Mobility of Children

Does Losing Your Home Mean Losing Your School? Effects of Foreclosure on the School Mobility of Children
Regional Science and Urban Economics, 41(4), 2011: 407-414.

Bean, Vicky, Ingrid Ellen, Amy Ellen Schwartz, Leanna Stiefel and Meryle Weinstein
02/01/2011

In the last few years, millions of homes around the country have entered foreclosure, pushing many families out of their homes and potentially forcing their children to move to new schools. Unfortunately, despite considerable attention to the causes and consequences of mortgage defaults, we understand little about the distribution and severity of these impacts on school children. This paper takes a step toward filling that gap through studying how foreclosures in New York City affect the mobility of public school children across schools. A significant body of research suggests that, in general, switching schools is costly for students, though the magnitude of the effect depends critically on the nature of the move and the quality of the origin and destination schools.

Does Municipally Subsidized Housing Improve School Quality? Evidence from New York City

Does Municipally Subsidized Housing Improve School Quality? Evidence from New York City
Journal of the American Planning Association, 77 (2): 127-141.

Chellman, Colin, Ingrid Ellen, Brian McCabe, Amy Ellen Schwartz and Leanna Stiefel
01/01/2011

Problem: Policymakers and community development practitioners view increasing subsidized owner-occupied housing as a mechanism to improve urban neighborhoods, but little research studies the impact of such investments on community amenities.

Purpose: We examine the impact of subsidized owner-occupied housing on the quality of local schools and compare them to the impacts of city investments in rental units.

Methods: Using data from the New York City Department of Education (DOE) and the New York City Department of Housing Preservation and Development (HPD), we estimate three main sets of regressions, exploring student characteristics, school resources, and school outcomes.

Results and conclusions: The completion of subsidized owner-occupied housing is associated with a decrease in schools’ percentage of free-lunch eligible students, an increase in schools’ percentage of White students, and, controlling for these compositional changes, an increase in scores on standardized reading and math exams. By contrast, our results suggest that investments in rental housing have little, if any, effect.

Takeaway for practice: Policies promoting the construction of subsidized owner-occupied housing have solidified in local governments around the country. Our research provides reassurance to policymakers and planners who are concerned about the spillover effects of subsidized, citywide investments beyond the households being directly served. It suggests that benefits from investments in owner occupancy may extend beyond the individual level, with an increase in subsidized owner-occupancy bringing about improvements in neighborhood school quality.

Sustainable neighbourhood development: Insights from Southern California

Sustainable neighbourhood development: Insights from Southern California
Environment and Planning B: Planning and Design 37(3) 387 – 407

Garde, A., Saphores, J.D., Matthew, R. & K. Day.
01/01/2010

We examine the diffusion of sustainable planning and design concepts into neighbourhood development projects, based on findings of a survey of planners in all 180 cities of five Southern California counties. Sustainable neighbourhood development has particular significance in Southern California owing to the regions’s rapid growth. We compare ‘typical’ and ‘innovative’ neighbourhood developments to determine whether sustainable planning and design concepts are being incorporated in these projects. Although planners agree that ‘innovative’ projects are more likely than ‘typical’ projects to incorporate sustainable planning and design concepts, sustainability is not a high priority even in innovative neighbourhood projects. Our respondents identified significant barriers to and limited opportunities for encouraging sustainable neighbourhood development. These trends in planning and design appear likely to continue unless strong policy and other mechanisms are adopted to encourage sustainable neighbourhood development. The paper concludes with recommendations to promote more sustainable neighbourhood development.

The High Cost of Segregation: The Relationship Between Racial Segregation and Subprime Lending

The High Cost of Segregation: The Relationship Between Racial Segregation and Subprime Lending
November 2009

Furman Center for Real Estate & Urban Policy
11/18/2009

This study examines whether the likelihood that borrowers of different races received a subprime loan varied depending on the level of racial segregation where they live. It looks both at the role of racial segregation in metropolitan areas across the country and at the role that neighborhood demographics within communities in New York City played.

Pages

Subscribe to Housing & Community Development