Sławomir Palick
For Whom and What are the Benefits of Revitalization? Critical Assessment of the Consequences of Urban Renewal on the Housing Market
Purpose – Assessment of the direction and strength of the impact of revitalization processes on price changes on the secondary housing market in downtown of Poznań. In the wider perspective – discussion of the nature of redistribution of the revitalization effects on the housing real estate market.
Design/methodology/approach – Transaction data on housing from the secondary market in Poznań downtown were used. They were obtained from public registers of real estate prices (from the period of 2006-2016). With the use of quantile regression (QR), the direction and strength of the impact of revitalization processes on changes in real estate prices were determined.
Findings – Revitalization usually causes various effects of increases in apartment prices in revitalized areas, with the strongest increase in prices in the case of the most attractive properties. On the other hand, in special situations, such as the least attractive housing stock, there may be a negative impact of city renewal on the real estate market.
Research limitations – Limited access to transactional data, time and labor consumption of the database building process, errors in the source transactional databases in public registers (e.g. data redundancy).
Research implications – The impact of revitalization on the housing market points to two hitherto unknown dangers:
1) Unequal distribution of market consequences of revitalization changes in relation to the value of housing, which significantly changes their levels of economic availability.
2) Shifting surplus values resulting from revitalization away from weaker housing stocks towards better housing stocks.
Keywords: revitalization; urban renewal; housing market; housing prices; real estate
JEL codes: R21, R31, R38, R58, O2, O18
Article type: research article
CITATION (APA): Palicki, S. (2021). For Whom and What are the Benefits of Revitalization? Critical Assessment of the Consequences of Urban Renewal on the Housing Market. World of Real Estate Journal, 116(2), 4-16.
DOI: https://doi.org/10.14659/WOREJ.2021.116.01
