HOMEOWNERSHIP AND NEIGHBORHOOD STABILITY

A major objective of many neighborhood revitalization programs is to i ncrease homeownership. Conventional wisdom holds that this is one of t he best ways to stabilize areas in decline. This article questions con vention by presenting a conceptual model of how homeownership rates mi ght affect various indicators of neighborhood stability and by determi ning whether there is support for this model in the literature. The ar ticle also presents an original analysis of the relationship between h omeownership rates and two measures of neighborhood stability. The lit erature review finds considerable support for an association between h omeownership and both improved property maintenance and longer lengths of tenure. The analysis of census data similarly indicates less resid ential mobility and greater property value appreciation in areas with greater homeownership. Although initial values and citywide value chan ges appear to have much stronger effects on changes in property values than the tract homeownership rate, modest changes in homeownership ra tes are clearly associated with increased property values.