Cost-effective methods for evaluation of neighbourhood-renewal programs
Summary

The aim of this research project is to fill this existing void in the evidence base by utilizing cost-effective quantitative methods to measure the effectiveness of neighbourhood renewal in fulfilling its objectives.

According to urban economists, real estate values are significantly influenced by a set of locational amenities and disamenities whose neighbourhood effects, whether adverse or positive, ‘spill over’ into the property market and, in turn, affect house prices. An enormous number of studies have used hedonic price models to provide strong empirical support for this proposition. Based on this economic theory, we hypothesize that, if a renewal program is successful, the ensuing enhancements in housing quality, neighbourhood amenities and improvements in the average level of health and wellbeing will be capitalized into the selling price of property values within and in the vicinity of a renewal site. This will lead to an increase in both the sales prices of properties that are located within renewal site boundaries (direct effects) as well as proximate properties that lie outside of the renewal site (indirect, spillover effects).

 

Start By 15 April 2011
Completed By 15 June 2012
Funding AHURI (Australian Housing and Urban Research Institute)

Outcomes
Researcher(s) Gavin Wood, Melek Cigdem
Program Sustainable Urban and Regional Futures