Assets and neighborhoods: The role of individual assets in neighborhood revitalization

Abstract

Asset‐building strategies—including individual development accounts, homeownership programs, and microenterprise development—became increasingly popular in the 1990s. Although research has demonstrated how assets produce individual benefits, less is known about the extent to which these benefits induce positive place‐based effects. We develop a model of the relationship between individual asset‐building strategies and neighborhood revitalization in order to inform future empirical work and help ensure that asset accumulation and neighborhood revitalization are mutually reinforcing. Our model emphasizes the conditions and programmatic factors that may encourage and discourage the transfer of benefits from individuals to neighborhoods. Examples from case studies of four community‐based organizations suggest that the likelihood of neighborhood spillovers may be increased if policies and practices aim to “manage” the returns from the individual asset, retain asset holders, provide reinvestment conduits, track local purchasing power, and create additional opportunities for collective action.