DO NEIGHBORHOOD HOUSING MARKET TYPOLOGIES MATTER? MEASURING THE IMPACT OF THE HOME PARTNERSHIP INVESTMENT PROGRAM IN BALTIMORE, MARYLAND
Boswell, Lynette Katrina
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Since the late 1990s, neighborhood housing market typologies (NHMTs) have become a popular policy tool used by cities to evaluate neighborhood housing markets. NHMTs support place-based interventions, and are used to guide municipal investments as cities target resources based on neighborhood conditions. The assumption is that the effectiveness of local investment strategies to trigger neighborhood change is linked to existing neighborhood conditions. However, this assumption has not been tested explicitly in terms of neighborhood housing markets. This study examines the following key question: does the impact of public investments on nearby home sale prices vary across neighborhood housing markets? This dissertation consists of three related essays examining the utility of NHMTs in Baltimore, Maryland. Essay one examines the theoretical foundation of and development of NHMTs. Essay two focuses on the HOME Partnership Investment Program (HOME Program) and examines whether the impacts of this program on surrounding sale prices vary across neighborhoods housing markets. Essay three discusses the implications of encouraging cities to target investments in proximity to neighborhood amenities, such as parks and transit nodes, and uses spatial econometrics to determine if and how amenities in different housing markets impact surrounding home sale prices. This study finds that NHMTs do matter to assess the impact of housing program investments and urban amenities on nearby sale prices of homes located in different housing markets. In this analysis, neighborhood housing market types are identified using a cluster statistical methodology based on a combination of indicators, including property values, neighborhood-wide property conditions, and socioeconomic characteristics of households. To examine public investments and urban amenities, separate hedonic price functions are estimated for each market type. Results of these analyses suggest that HOME Program investments and urban amenities affect surrounding home prices, and when estimated from separate price functions, the results show significant differences across market types.