Deborah A. Carroll and Christopher B. Goodman, “Neighborhood Institutions and Residential Home Sales: Evaluating the Impact of Property Tax Exemptions” Journal of Real Estate Finance & Economics
We focus on the urban amenities of “neighborhood institutions,” which are the myriad localized governments and nonprofits, such as religious and educational institutions, that provide public or quasi-public services to their neighborhoods. We examine whether neighborhood institutions positively impact their surrounding neighborhoods by utilizing property tax exemption records from the City of Milwaukee, Wisconsin, during 2002-2016. We combine these records with parcel-level data on residential home sales to identify each institution’s exact location and type. Using a traditional hedonic model and a repeat sales model, we examine the influence of nearby tax-exempt properties on residential home sales. We find from the repeat sales model that close proximity (0m-250m) to educational properties, labor halls, and utilities are associated with lower home sale prices, all else equal. We find a sporadic and limited positive correlation with nearby colleges and cemeteries and home sale prices.
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