Homeownership and neighborhood stability

TLDR

Neighborhood revitalization programs often aim to increase homeownership, which is widely believed to stabilize declining areas. This study seeks to test that conventional wisdom by developing a conceptual model linking homeownership rates to neighborhood stability indicators and assessing its empirical support. The authors review existing literature and conduct an original census‑data analysis to examine the relationship between homeownership rates and two stability measures. Both the literature review and the census analysis reveal that higher homeownership is associated with better property maintenance, longer tenure, reduced residential mobility, and greater property value appreciation, though initial values and citywide changes exert stronger effects.

Abstract

Abstract A major objective of many neighborhood revitalization programs is to increase homeownership. Conventional wisdom holds that this is one of the best ways to stabilize areas in decline. This article questions convention by presenting a conceptual model of how homeownership rates might affect various indicators of neighborhood stability and by determining whether there is support for this model in the literature. The article also presents an original analysis of the relationship between homeownership rates and two measures of neighborhood stability. The literature review finds considerable support for an association between homeownership and both improved property maintenance and longer lengths of tenure. The analysis of census data similarly indicates less residential mobility and greater property value appreciation in areas with greater home‐ownership. Although initial values and citywide value changes appear to have much stronger effects on changes in property values than the tract home‐ownership rate, modest changes in homeownership rates are clearly associated with increased property values.