Higher Home Values Research Articles

Cumulative Experience of Neighborhood Walkability and Change in Weight and Waist Circumference in REGARDS.

Neighborhood walkability-features of the built environment that promote pedestrian activity-has been associated with greater physical activity and lower body mass index (BMI; calculated as weight (kg)/height (m)2) among neighborhood residents. However, much of the literature has been cross-sectional and only a few cohort studies have assessed neighborhood features throughout follow-up. Using data from the Reasons for Geographic and Racial Differences in Stroke Study (2003-2016) and a neighborhood walkability index (NWI) measured annually during follow-up, we assessed whether the cumulative experience of neighborhood walkability (NWI-years) predicted BMI and waist circumference after approximately 10 years of follow-up, controlling for these anthropometric measures at enrollment. Analyses were adjusted for individual-level sociodemographic covariates and the cumulative experience of neighborhood poverty rate and neighborhood greenspace coverage. Almost a third (29%) of participants changed address at least once during follow-up. The first change of residence, on average, brought the participants to neighborhoods with higher home values and lower NWI scores than their originating neighborhoods. Compared with those having experienced the lowest quartile of cumulative NWI-years, those who experienced the highest quartile had 0.83 lower BMI (95% confidence interval, -1.5, -0.16) and 1.07-cm smaller waist circumference (95% confidence interval, -1.96, -0.19) at follow-up. These analyses provide additional longitudinal evidence that residential neighborhood features that support pedestrian activity are associated with lower adiposity.

From Audits to Projects: Evaluating New York State Policy to Encourage Home Retrofit Projects

This research explores socio-spatial characteristics of home retrofit projects in New York State and their association with the state’s free home energy audit program. Prior work by the authors found that zip codes with more elder individuals and higher levels of education are more likely to undertake an energy audit; it was also found that higher incomes may be negatively correlated with audit decisions. Less understood is the follow-up decision after an audit to undertake a retrofit. From a policy and climate perspective, the actionable retrofit decision is far more impactful than the informational audit, making it an important area of further research. This work examines this understudied area using a combination of datasets, including census data, American Community Survey (ACS) data, and retrofits data provided by the New York State Energy Research and Development Authority (NYSERDA). Findings indicate that many of the same socioeconomic characteristics that predict audits are influential in retrofit projects as well (age, education, higher home values). A strong statistical relationship was found between audits per capita and subsequent retrofit projects, which is to be expected, as NYSERDA requires audits of residents desiring efficiency retrofits. However, this also indicates that the role of the audit in information transfers may be highly influential in encouraging home energy efficiency projects. This finding underscores the policy importance of offering low- or no-cost energy audit incentives to encourage greater participation in home retrofit programs.

A national inventory and analysis of US transfer of development rights programs

Transfer of development rights (TDR) programs shift development intensity between land parcels. Jurisdictions, most commonly local municipal or county governments, employ TDR to protect resources such as farmland or historical properties and to encourage infill and redevelopment where deemed appropriate. However, while championed by economists and others seeking to reduce conflicts between land development and preservation, TDR program adoption has varied widely across the US. What demographic, economic, or environmental factors are associated with TDR program establishment? This paper describes a census of 375 TDR programs in the United States, documenting primary program attributes and adoption year and categorizing their functions and typology. Using logistic regression, we analyze program spatial patterns and factors predicting program implementation. We find that areas that are coastal, more liberal, have higher home values, in home-rule states, and in states with state-wide growth management programs, are all significantly more likely to implement TDR programs.

Rising home values and Covid-19 case rates in Massachusetts.

We explore whether housing displacement pressure could help explain place-based disparities in Massachusetts COVID-19 prevalence. We use qualitative data from the Healthy Neighborhoods Study to illustrate how rising and unaffordable housing costs are experienced by residents in municipalities disproportionately affected by COVID-19. We then predict municipal-level COVID-19 case rates as a function of home value increases and housing cost burden prevalence among low-income households, controlling for previously identified community-level risk factors. We find that housing value increase predicts higher COVID-19 case rates, but that associations are ameliorated in areas with higher home values. Qualitative data highlight crowding, “doubling up,” homelessness, and employment responses as mechanisms that might link housing displacement pressure to COVID-19 prevalence.

Privatization and intermunicipal cooperation in US local government services: balancing fiscal stress, need and political interests

ABSTRACT The 2007–2008 Global Financial Crisis renewed interest in New Public Management tools. Privatization and intermunicipal cooperation are the two most common forms of service delivery reforms among US local governments. Which is more responsive to fiscal stress, service needs and political interests? Our national survey of 2,109 US local governments in 2017 finds cooperation is more responsive to fiscal stress and community need, while privatization is more common in communities with higher home values. Unionization is associated with more privatization and less cooperation. US local governments balance fiscal stress and community need. Cooperation is the preferred service delivery alternative.

Variables shaping coastal adaptation decisions to armor, nourish, and retreat in North Carolina

Understanding why and where decision-makers choose to use different climate change adaptation strategies remains an important theoretical and practical question for coastal adaptation. This article provides an exploratory statistical analysis of three adaptation measures (shoreline armoring, property acquisitions, and beach nourishment) and their deployment with respect to metrics of risk exposure, socioeconomic markers, and critical infrastructure in North Carolina (U.S.). This exploratory analysis evaluates two propositions. First, adaptation measures are deployed relative to specific metrics of risk. Second, adaptation choice disproportionately correlates with socioeconomic attributes. The findings support both propositions and reveal that shoreline armoring correlates with higher home values, household incomes, and population density and low racial diversity. Property acquisitions are found to correlate with low home values, household incomes, and population density and high racial diversity. Furthermore, adaptation measures are interconnected. Acquisitions are more likely to occur in areas with low levels of armoring. Beach nourishment occurs exclusively in areas with shoreline armoring. The results find no correlation of adaptation deployment with critical infrastructure. This article provides the foundation for future research into how adaptation decisions are made and trade-offs among adaptation actions considered, whether decisions adequately protect critical infrastructure, and how deployment patterns affect social equity.

Place Matters: Small Business Financial Health in Urban Communities

While many researchers have observed overall heterogeneity in the small business sector, existing data sources provide limited information about community-level differences in small business financial outcomes. In this report, we use de-identified transaction data from business deposit accounts to identify small business financial outcomes in ZIP codes across 25 U.S. metropolitan areas. While the majority of small businesses were profitable, many had limited cash liquidity. Moreover, community-level differences in small business profitability and cash liquidity were persistent from 2013 to 2017. We also found that small business cash liquidity and profitability were correlated with other community-level indicators. Small businesses held more cash and were more profitable in communities with higher home values, higher shares of college-graduates, and smaller shares of non-White residents. Finally, we found that larger high-tech and other professional services firms were less prevalent in communities where small businesses had limited profitability or cash liquidity. These community-level differences suggest that place-based small business economic development programs may contribute to broad-based economic growth, that policies that address household financial wealth and education might also benefit small businesses, that programs could be targeted to the needs of small businesses most prevalent in majority Black and Hispanic communities, and that both high-tech and lower-tech firms can serve as anchor institutions in supporting community economic development.

Sociodemographic Variation in the Use of Conservative Therapy Before MRI of the Lumbar Spine for Low Back Pain in the Era of Public Reporting

PurposeTo evaluate the relationship between use of MRI of the lumbar spine for low back pain without prior conservative therapy and sociodemographic factors after the implementation of public reporting for Medicare's Hospital Outpatient Imaging Efficiency Measure for MRI Lumbar Spine for Low Back Pain (OP-8) metric. Materials and MethodsWe conducted a secondary data analysis using a nationally representative sample of 2009 to 2014 Medicare claims to evaluate trends in use of conservative therapy before MRI of the lumbar spine. Continuously enrolled fee-for-service Medicare beneficiaries were included. We applied the same criteria used by Medicare to generate a measure consistent with OP-8. Regression was used to evaluate trends in OP-8 by reporting status (outpatient hospital or clinic) and beneficiary characteristics. Age, sex, and race from the Medicare denominator and area-level socioeconomic measures from the Area Health Resource File were used as covariates. ResultsUse of conservative therapy before MRI increased regardless of OP-8 reporting status. Several sociodemographic characteristics were associated with the likelihood of receiving conservative therapy before MRI; beneficiaries were less likely to receive conservative therapy before MRI if they were male, older, black, Hispanic or Latino; if they lived in the West or in an area with more college graduates; or if they had low incomes. Beneficiaries were more likely to receive conservative therapy before MRI if they had poorer health or lived in areas with higher home values. ConclusionVariations in use of conservative therapy according to factors other than clinically relevant factors, such as health status, are worrying. Further strategies are needed to improve appropriateness and equity in the provision of diagnostic imaging.

Floods and Water Service Disruptions: Eliciting Willingness-to-Pay for Public Utility Pricing and Infrastructure Decisions

Devastating floods and ongoing droughts throughout the world highlight the infrastructure and management challenges facing water and wastewater utilities. While increasing variability in climate has been identified as the immediate culprit, the severity of events has been exacerbated by years of underinvestment in infrastructure improvements due to inadequate pricing of services. The American Water Works Association (2015) identifies a crucial step for decision-makers: identify clearly communities’ priorities with respect to water and wastewater management, both of which provide public or community-level goods and services. Using data from two separate choice experiments, collected in the same survey of Canadian households, the current paper estimates household willingness-to-pay (WTP) to reduce the likelihood of flood events and water service disruptions. Results from both choice experiments show a strong preference for policy scenarios that reduce these risks, although there is a substantial amount of heterogeneity. People living in the Prairie region, rural residents, and people living in areas with higher home values have a higher WTP. Although the results lend support to public infrastructure programs for addressing flood and water disruption risks, the degree to which these are preferred to private action is not clear.

A Relationship Among Neighborhood Traits, Home Sales and Mortgage Fraud: The Atlanta Market Leading Into the Mortgage Crash of 2008

Reports of mortgage loan fraud grew exponentially in the years leading up to the 2008 financial crisis. We examine simple correlates between mortgage fraud and the economic, credit and loan traits within Atlanta zip codes. First, we find that higher home values and lower rates of owner-occupancy lead to higher levels of fraud. Second, we find that mortgage fraud is not correlated with the proportion of nonbank lenders. Third, we find that higher unemployment rates are positively correlated with higher levels of fraud. Finally, we find no correlation between the historic default rate and the prevalence of mortgage fraud.

Measuring the value of apartment density?

PurposeThe primary purpose of this study is to identify whether there is a price premium and consumers’ preferences for higher housing density, and whether there is a relationship between housing densities and sales prices. The second purpose was to identify if there is a non-linear relationship between housing density and prices even though housing density is directly associated with housing prices.Design/methodology/approachThis paper applies hedonic modeling techniques to measure the value of development density of apartments in the metropolitan area of Seoul, South Korea. The regression of the sale price is a function of different types of variables such as density, market, location and other control variables.FindingsFor the first question, this paper concludes that the higher densities cause housing prices to decrease in Seoul. The summary of the results presents that housing density, floor area ratio (FAR), building coverage ratio and floor level are all important components affecting housing prices. Generally, consumers tend to buy housing with central heating systems, more parking spaces, smaller portion of rental housing within an apartment and buildings that have more of a mixed-use function. Consumers are also found to pay higher premiums for housing in areas with high population growth and less housing supply. It is conclusive that people are inclined to live in populated areas but do not want more density. For the second question, the results show that generally FAR has quadratic effects, but most housing density variables tend to have a non-linear relationship depending on the different quantile groups.Originality/valueThere is a knowledge gap in the area of estimating development density of apartments. Generally, studies investigating property value impacts of multifamily housing focus on external effects of the multifamily housing on home values to examine whether high density development could result in a decrease in nearby property values. These studies found that there are some positive effects. A study found that high-density housing increases property values of existing single-family homes (Joint Center for Housing Studies, 2011). More specifically, developments that are of a high design quality and superior landscaping increase values of single-family homes as well. Also, those residents who live in these high-density apartments can be good potential buyers for the existing single-family homes. The greater the number of buyers, the greater the housing market becomes. Similarly, according to a report by the Joint Center for Housing Studies (2011) at Harvard University, the presence of multifamily residents correlates with higher home values in “working communities”. Indeed, density can be an important factor determining value of apartments because of its unique characteristics. However, no empirical evidence has been provided in the literature with regard to the value of the development density. This study contributes toward improving this knowledge gap.

An Analysis of Patterns and Trends in United States Stormwater Utility Systems

AbstractSeveral factors, such as municipality location and population, are thought to influence trends among stormwater utilities (SWUs); however, no analysis of the relationship between these factors andSWUcharacteristics has been performed. This article corroborates hypothesized relationships and identifies trends and patterns in the establishment, funding mechanism, and magnitude ofSWUs by analyzing location, population density, home value, and year of establishment for a comprehensive nationalSWUdatabase with data for 1,490SWUs. The equivalent residential unit (ERU), aSWUthat charges based on impervious area, was the most prevalent funding mechanism in all National Oceanic and Atmospheric Administration Climate Regions of the United States except the West and West‐North‐Central. TheERUwas also found in larger cities with high population densities, whereas the Flat Fee, aSWUthat charges a single rate for all properties, was found in smaller towns. Higher home values were correlated with higher monthly fees for 28% of the municipalities analyzed. The residential equivalence factor, aSWUthat charges based on runoff produced, was popular in municipalities with higher home values, whereas the Flat Fee was popular in municipalities with lower home values. The number ofSWUs established increased with Phase I municipal separate stormwater and sewer system (MS4) permit and PhaseIIsmallMS4 permit deadlines. Summary tables provide guidance to aid municipalities considering aSWU.

State-Issued Identification Cards Reveal Patterns in Adult Weight Status.

Background: State-issued identification cards are a promising data source for neighborhood-level obesity estimates. Methods: We used information from three million Oregon state-issued identification cards to compute age-adjusted estimates of average adult body mass index (BMI) for each census tract in the state. We used multivariate linear regression to identify associations between weight status and population characteristics, food access, commuting behavior, and geography. Results: Together, home values, education, race, ethnicity, car commuting, and rural-urban commuting area (RUCA) explained 86% of the variation in BMI among tracts. BMI was lower in areas with higher home values and greater educational attainment, and higher in areas with more workers commuting by car. Discussion: Our findings are consistent with other research on socioeconomic disparities in obesity. This demonstrates state-issued identification cards are a promising data source for BMI surveillance and may offer new insight into the association between weight status and economic and environmental factors. Public health agencies should explore options for developing their own obesity estimates from identification card data.

Impact of Surf Breaks on Home Prices in Santa Cruz, CA

The growing field of ‘surfonomics' attempts to document surfing's economic contribution to local and regional communities, as well as the consumer surplus that surf breaks provide to millions of surfers. To date, no research has examined the extent to which the value of surf breaks is capitalized into home prices. This study uses the hedonic price method with data from three distinct beach-adjacent neighbourhoods in Santa Cruz, CA, USA, to estimate whether proximity to surf breaks leads to higher home values. The authors find that, after controlling for proximity to the beach, ocean views, the specific characteristics of the homes and neighbourhood effects, proximity to surf breaks is a statistically significant contributor to overall home value. A home that is right next to a surf break is valued on average at approximately US$106,000 more than an equivalent home a mile away.

Geographical Vibrancy and Firm Performance

We develop a geographical-based vibrancy index using important location characteristics from the Urban Economics literature that measure local economic health. We show that the vibrancy index not only predicts firm policy variables such as investment and leverage, but also predicts firm performance and firm value. More vibrant firms are located in counties with more highly educated populations, lower unemployment, higher labor force participation rate, higher home values, higher density of firms that pay higher wages, and a higher percent above poverty than do low vibrancy locations. Our results indicate that the local vibrancy of a firm headquarters is an important determinant of firm policies and profitability.

Hurricane preparedness and planning in coastal public school districts in the United States

One hundred school districts were surveyed along the Atlantic and Gulf of Mexico coasts from North Carolina to Texas. Nearly all had recent experience with a tropical storm or hurricane and had hurricane plans in place. About half teach hurricane preparedness to students and 85 % train staff members in hurricane preparedness. Sources of information about cyclone threats were the National Hurricane Center (91 %), local television news (74 %), The Weather Channel (67 %), and the internet (67 %). Only 36 % would cancel classes for a hurricane warning but 89 % would cancel classes for a mandatory evacuation. Most districts (75 %) would use schools as storm shelters, and 92 % would use school busses to assist in community evacuations. Districts with a higher percentage of Hispanic population provided hurricane information in Spanish. Larger school districts were less likely to cancel classes in the middle of the day for a storm threat. Districts with higher home values were less likely to use school busses for evacuations, and smaller school districts were less likely to provide schools as storm shelters. There were no other significant associations between hurricane preparedness of the districts and district demographic variables of poverty, percent black, percent Hispanic, population, district size, or median home values.

Finding the Missing Premium: An Explanation of Home Values within Residential Community Associations

Supporters of Residential Community Associations (RCA) argue that one of the advantages of living in an RCA is an increase in property values. Using a unique dataset comprised of 124,878 home sales spanning ten years, this paper, in one of the first empirical studies of RCAs, finds that the higher home values believed to exist, while present in a comparison of means, disappear when characteristics are controlled for. The explanation of this unexpected result is that the gain from living within an RCA is hidden by the homogeneity of the homes within RCAs.

Mortgage Refinancing in 2001 and Early 2002

Over the past ten years, millions of homeowners have taken advantage of lower mortgage interest rates and higher home values and have refinanced their mortgage loans. For many, the decision to refinance was motivated by a desire to reduce their monthly mortgage payments, either by obtaining a lower interest rate or by extending the maturity of their mortgage. When they have refinanced, many homeowners have liquefied some of the equity they accumulated in their homes by borrowing more than they needed to pay off their former mortgage and cover the transaction costs of the refinancing. They have used the funds raised in so-called cash-out refinancings to make home improvements, to repay other debts, or to purchase goods and services or other assets. This article presents estimates, based on recent survey findings, of the incidence of refinancing, the changes in terms and conditions of mortgages after refinancing, the amount of funds homeowners raised in the process, and the ways in which homeowners used the funds. It also provides comparisons with previous surveys of refinancing activity and a statistical analysis of the relative importance of different determinants of refinancing and the amount of home equity liquefied during refinancing. Finally, it gives rough estimates of the effects of recent refinancing on the U.S. economy, including the effects on aggregate consumption spending.