Can Local Ordinances Prevent Neighborhood Destabilization?

This article assesses the ability of local housing ordinances to prevent neighborhood destabilization, specifically that arising as a consequence of the most recent housing crisis. We evaluate the degree to which vacancy registrations and point-of-sale inspection requirements influenced housing mark...

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Bibliographic Details
Published in:Housing policy debate 2016-05, Vol.26 (3), p.517-535
Main Authors: Fitzpatrick, Thomas J., Nelson, Lisa, Richter, Francisca G.-C., Whitaker, Stephan
Format: Article
Language:English
Subjects:
City ordinances
Delinquency
Economic crisis
Foreclosure
Housing
Housing ordinances
neighborhood stabilization
Neighborhoods
propensity score matching
Public housing
Real estate sales
Studies
Vacancies
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Summary:This article assesses the ability of local housing ordinances to prevent neighborhood destabilization, specifically that arising as a consequence of the most recent housing crisis. We evaluate the degree to which vacancy registrations and point-of-sale inspection requirements influenced housing market outcomes during the housing crisis. With comprehensive real property data from Cuyahoga County, Ohio, we measure outcomes that characterize housing market distress including foreclosures, sales below the tax-assessed value, bulk sales, flipping, and property tax delinquency. We evaluate outcomes across properties in regulated and unregulated municipalities using matching procedures on linked data containing property, neighborhood, loan, and transaction characteristics. We find evidence that vacancy registrations substantially reduce foreclosures. In contrast, we find little evidence that point-of-sale inspections reduce undesirable transactions. Rather, properties in cities with inspection requirements displayed higher levels of foreclosure and tax delinquency relative to the control group during the study period.
ISSN:1051-1482
2152-050X
DOI:10.1080/10511482.2015.1123754