Fixing Up after Tearing Down: The Impact of Demolitions on Residential Investment

Abstract

Does the presence of deteriorating housing affect nearby property owner’s decision to maintain their units? Does demolishing these distressed houses increase nearby homeowner’s maintenance investment? In this paper, I examine these questions by testing whether exposure to targeted demolitions of abandoned and distressed housing affects changes in the external condition of nearby houses. Using two waves of a property inventory in Cleveland, Ohio, my models suggest that, compared with a control group of houses located near vacant housing, proximity to demolitions decreases the likelihood that a property’s condition deteriorated between 2015 and 2018 and increases the likelihood that it improved.

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