THE IMPACT OF LOW INCOME HOUSING TAX CREDIT PROJECTS ON NEIGHBORHOOD PROPERTY VALUES: THE CASE OF MONTGOMERY COUNTY, MD

Abstract

Previous studies on the impact of the impact of subsidized housing on neighborhood property values have not been able to provide any consensus due to the implementation of estimation strategies that have serious if somewhat different limitations. This study utilizes the difference-in-difference propensity score matching methodology to estimate the impact of Low Income Housing Tax Credit (LIHTC) projects on neighborhood property values in Montgomery County, Maryland by comparing the difference between pretreatment and post-treatment housing prices for neighborhoods that received an LIHTC project with those that did not. Results show that proximity to an LIHTC project has a significant negative impact on neighborhood property values.