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Effects of New Grocery Store Development on Inner-City Neighborhood Residential Prices

  • Belkis Cerrato Caceres and Jacqueline Geoghegan

Abstract

A difference-in-differences approach is used to measure the impact of new inner-city grocery store developments on residential housing values in Worcester, Massachusetts. Using geocoded housing sales from 1988–2011, we develop a hedonic model, exploiting temporal and spatial discontinuities, to identify the effect of 12 new grocery stores on neighborhood housing prices. Results suggest these new stores were associated with an increase in sale prices of nearby homes, and these results could help inform current policies related to urban food deserts, in that new grocery stores have the potential to improve neighborhood wealth as well as health.

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Copyright

This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

Corresponding author

Correspondence: Belkis Cerrato Caceres ■ Department of Social Science, Edgewood College1000 Edgewood College DrMadison, WI 53711 ■ Phone 508.793.7709 ■ Email bcerrato@edgewood.edu

Footnotes

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The authors would like to thank John Brown, Wayne Gray and Wang Jin for advice and suggestions, as well as two anonymous reviewers for very helpful comments. In addition, research support for this project from the Mosakowski Institute for Public Enterprise at Clark University is gratefully acknowledged.

Footnotes

References

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Effects of New Grocery Store Development on Inner-City Neighborhood Residential Prices

  • Belkis Cerrato Caceres and Jacqueline Geoghegan

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