DWELLINGS FOR THE SEVERELY MENTALLY-DISABLED AND NEIGHBORHOOD PROPERTY-VALUES - THE DETAILS MATTER

The research investigates the effects of dwellings occupied exclusivel y by severely mentally disabled (SMD) tenants on sales prices of nearb y homes. Hedonic price models are estimated for an exhaustive sample o f single-family home sales from 1989 to first quarter 1992 in Newark a nd Mt. Vernon, OH. Proximity within two blocks of rehabilitated dwelli ngs occupied by SMD had no significant relationship with sales prices. Prices of homes proximate to two small, newly constructed apartment c omplexes were 40% lower after the complexes opened, although those nea r three other similar apartment complexes were not.