Large Redevelopment Initiatives, Housing Values and Gentrification: The Case of the Atlanta Beltline

Abstract

This paper examines the announcement effects on property values of a large, multipurpose development initiative in Atlanta, Georgia called the “Beltline” which has received substantial public attention. The project involves the redevelopment of an abandoned rail line that encircles the central area of Atlanta. The 6500-acre project will be funded by tax increment financing bonds and will include the development of light rail, greenspace and real estate projects. By examining home sales from 2000 to 2006, the paper identifies changes in price premiums for locations in various geographical buffers around the Beltline and compares the timing of such changes with coverage in the local newspaper. It is found that there are large increases in premiums for homes near the lower-income, southside parts of the Beltline TIF district between 2003 and 2005, which corresponds to the initial media coverage of the planning process. The findings suggest that planning for the Beltline induced substantial speculation and gentrification.