Impact of Targeted Redevelopment of Central Business District on Housing Prices in the Surrounding Neighborhoods: Evidence from Oakland, California

Abstract

Using a longitudinal data set that inventories single-family home sale transactions within 3.2 km (2 mi) of the Central District redevelopment area of Oakland, CA, this paper finds that the targeted efforts to redevelop the Central District have partially mitigated the District’s negative impact on surrounding neighborhoods. The paper examined the Central District from 1992 to 2006, a period during which the District changed in character from a business district to a mixed-use vibrant area. During the period 1992 through 2000, proximity to the Central District negatively impacted housing prices up to 1.6 km (1 mi) from the District boundary. However, the magnitude of the impact reduced in the 2001–2006 period and dissipated after 0.8 km (0.5 mi) from the District boundary, indicating that the redevelopment efforts had a positive spill-over effect on surrounding property values.