Land Bank 2.0: An Empirical Evaluation

Abstract

ABSTRACT. In 2009, Cuyahoga County, Ohio (Cleveland and 58 suburbs), established a land bank to acquire low-value properties, mitigate blighted housing, and slow the decline of property values. This empirical study evaluates the effectiveness of the land bank by estimating spatially corrected hedonic price models using sales near the land-bank homes. The land bank reduces the negative externalities of the properties it acquires. Its largest impact is the preservation of equity in unsold homes. We also estimate the recovered value for homes sold during the study period and the property tax revenue that may have been forgone, absent the land bank.

What to do with vacant and abandoned residential structures? The effects of teardowns and rehabilitations on nearby properties

“…Our model results indicate that the presence of empty lots has a higher negative impact on nearby properties than vacant buildings. On the basis of our results and those of Whitaker and Fitzpatrick (), who found a similar positive effect for neighborhoods in Cuyahoga County, Ohio, we recommend landbanking as a policy option for the City of Cincinnati. In addition, we recommend the City of Cincinnati to sell city‐owned real estate properties at a nominal price of $1 to interested parties for remodeling purposes.…”

Destruction, Policy, and the Evolving Consequences of Washington, DC’s 1968 Civil Disturbance

“…From New Deal programs of the 1930s, to the "Urban Renewal" of the central areas of US cities in the 1950s and 1960s, the federal government has long striven, with at best mixed success, to redevelop urban areas (Collins and Shester, 2013;Cohen, 2019). In recent years, these policies have been replaced by new levers for addressing vacancy and disinvestment: land banks (Whitaker and Fitzpatrick, 2016), tax increment financing (Greenbaum and Landers, 2014), and various tax incentive zones (Neumark and Kolko, 2010;Freedman et al, 2021). Consistent with our findings, none are heralded as a silver bullet.…”

Destruction, Policy, and the Evolving Consequences of Washington, DC’s 1968 Civil Disturbance

“…From New Deal programs of the 1930s, to the "Urban Renewal" of the central areas of US cities in the 1950s and 1960s, the federal government has long striven, with at best mixed success, to redevelop urban areas (Collins and Shester, 2013;Cohen, 2019). In recent years, these policies have been replaced by new levers for addressing vacancy and disinvestment: land banks (Whitaker and Fitzpatrick, 2016), tax increment financing (Greenbaum and Landers, 2014), and various tax incentive zones (Neumark and Kolko, 2010;Freedman et al, 2021). Consistent with our findings, none are heralded as a silver bullet.…”