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 but imprecise 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. Download paper here
Recommended citation: Gregory T. Niemesh, L. Allison Jones-Farmer, Joseph Hart, William Holmes, and Nathan Soundappan, (2020). “The Impact of Land Bank Demolitions on Property Values”, Economics Bulletin, Volume 40, Issue 1, pages 217-233.