Volume 19, Issue 3

2008

 

For most U.S. homeowners, a home represents the biggest investment they will ever make, and until recently, most expected the value of their property to rise. If the mature suburbs in which many of these homeowners live have problems or are in decline, property values could decrease and investment value will be lost.

We define mature suburbs for Cuyahoga County, OH (the Cleveland area), and analyze the property values of single-family homes there. We examine how property values have behaved in mature suburbs compared with the central city and developing suburbs and analyze specific factors that have influenced the property value of single-family homes in these three submarkets from 1985 to 2000. Our analyses show that there is no overall decline in nominal property values. Housing space, nearness to workplaces and transportation networks, and tax rates are important variables in the model, affecting mature suburbs and developing suburbs differently.