The impact of clandestine methamphetamine labs on property values: Discovery, decontamination and stigma

Substance Use Disorder Treatment Centers and Property Values

“…The SDD approach has also recently been used to study the effect of several other disamenities on residential property values. Congdon-Hohman (2013) and Dealy, Horn, and Berrens (2017) use this technique to study the effect of clandestine methamphetamine laboratories ('meth labs') on property values. The production of meth involves the combination of explosive and deadly chemicals; this process is harmful to health.…”

“…Both studies show that meth labs endogenously locate in lower value areas and a significant decrease in property values associated with lab discovery. Dealy, Horn, and Berrens (2017) also identify a stigma effect:…”

“…To empirically address endogenous location choices in estimation of amenities and disamenities, several recent studies apply a spatial differences-in-differences (SDD) estimator (Congdon-Hohman 2013; Dealy, Horn, and Berrens 2017;Linden and Rockoff 2008). The SDD model is comparable in many ways to canonical differences-in-differences (DD) methods, which estimate average changes in outcomes in treatment and comparison groups, pre-and posttreatment (Angrist and Pischke 2008).…”

Hog Barns and Neighboring House Prices: Anticipation and Post‐Establishment Impacts

“…The primary estimation approach is based on a spatial difference‐in‐differences research design comparing changes in sale prices of houses very close to a barn with the sales prices of houses a little farther from a barn, before and after barn establishment. This is similar to the approach used in recent studies of the impacts of localized disamenities on residential property values, which exploit variation in the proximity of the disamenity to houses within small geographic areas (Linden and Rockoff 2008; Congdon‐Hohman 2013; Dealy, Horn, and Berrens 2017; Vyn 2018). The difference‐in‐differences design accounts for pre‐existing price differences between houses close to a hog barn and those that are a little farther from a barn, as well as intertemporal changes in house prices that would have occurred in the absence of the barn, for instance due to shifts in the local economic climate or due to interest rate movements.…”

Housing market detections

“…Cheng et al (2018) consider a bigger research area but measure municipality level data, whereasConklin et al (2017) focus on a more homogeneous sample using property transactions.8Dealy et al (2017) and Congdon-Hohman (2013) examine property prices nearby revealed meth labs, documenting property price discounts of 6.5 to 19 percent.9 The municipalities of The Hague and Rotterdam were the first to implement the school distance criterion, inspiring other municipalities and the national government.…”