Nonprofit Housing and Neighborhood Spillovers
Publication Date: August 2005
Publisher(s): Furman Center for Real Estate
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: neighborhoods; nonprofits; renters; Community and Economic Development
Type: Working Paper
Nonprofit organizations play a critical role in U.S. housing policy, a role typically justified by the claim that their housing investments produce significant neighborhood spillover benefits. However, little work has actually been done to measure these impacts on neighborhoods. This paper compares the neighborhood spillover effects of city-supported rehabilitation of rental housing undertaken by nonprofit and for-profit developers, using data from New York City. To measure these benefits, we use increases in neighboring property values, estimated from a difference-in-difference specification of a hedonic regression model. We study the impacts of about 43,000 units of city-supported housing completed during the 1980s and 1990s, and our sample of property transactions includes nearly 300,000 individual sales.