The brownfields reality check: A study of land value and the effects of brownfields on the locations of Section 8 housing

This research suggests that the co-location of Section 8 housing and brownfields in Cleveland, Ohio potentially compounds the blighted nature of distressed neighborhoods in a mutually reinforcing way. The concentrations of Section 8 households depress an already limited urban real estate market providing yet one more reason why the brownfields in central city neighborhoods remain unaddressed; and the brownfields further depress the real estate market in these same neighborhoods, thereby attracting residents who have the least amount of choice in their housing decisions. The brownfield and Section 8 housing policies highlight these negative real estate market externalities even further by promoting further avoidance of these distressed and blighted neighborhoods. Thus, this research argues that jointly addressing these two protracted urban issues will aid in bringing an end to this mutually reinforced spiral of urban decay. To study the relationship between brownfields and Section 8 housing in Cleveland, this research utilized a number of different data sources, incorporating property value and characteristic information with brownfield and land use information. For the model, a variation of the traditional least squares method of analysis was used where the initial stage tested the effects of brownfields on housing values, incorporating that effect into the value of the property. For the second stage, a maximum likelihood estimation that the property housed a Section 8 assistance recipient was calculated, testing the effects of various brownfield measures. The results from the research indicate that the locations of Section 8 households are influenced by the spatial distribution of brownfields and that influence is two-fold. While the mobility offered by the Section 8 Housing Choice Voucher program allows program participants flexibility in housing choice, the structural requirements of the program limit housing options for program participants, as the highest concentrations of Section 8 households live in areas where there are high concentrations of both brownfields and at-risk housing. This limiting factor appears to be related to the blight found in areas where there are high numbers of brownfields, as poor structural quality appears to be related to brownfields.