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district both before and after completion. However, there does appear to be a significant
reduction in the gap around the time of completion. Finally, it is interesting to note that,
while the gap between prices in the ring and the community district falls immediately
after completion in the 500-foot ring, it appears to take longer for the effects to be felt in
the more distant rings. The major decline in the 1,000-foot ring occurs between one and
two years after the completion of the homeownership project. In the 2,000-foot ring, the
decline continues through year three. One plausible explanation is that the
homeownership projects have a more sudden impact on their immediate surroundings,
but that, over time, they may bring benefits to more distant areas as well. (This is also
consistent with the fact—discussed below—that after 10 years the impact in the 500-foot
ring appears to dissipate—while the effects are persistent in the 2,000-foot ring.)
Figure 8
Percent Difference Between Prices in 500 Foot Ring and Community
District, by Time to Completion
0
-10 -5 0 5 10 15
Percent Difference Between Ring and CD
-5
-10
-15
-20
-25
-30
Time to Completion (0= 1 year before)
Figure 8 graphs these percentage differentials by the year relative to project
completion and clearly shows that the gap has declined over time. One year before the
completion of a homeownership project (marked by zero on the graph), the sales price of
a building within 500 feet of a future site is on average 10.4 percent lower than the price
of a comparable home sold in the same year in the same community district. In the years
22