Rachel Meltzer

Bodegas or Bagel Shops? Neighborhood Differences in Retail & Household Services

Social scientists studying the disadvantages of poor urban neighborhoods have focused on the quality of publicly provided amenities. However, the quantity and quality of local private amenities, such as grocery stores and restaurants, can also have important quality-of-life implications for neighborhood residents. In the current article, the authors develop neighborhood-level metrics of “retail access” and analyze how retail services vary across New York City neighborhoods by income and by racial composition. The authors then examine how retail services change over time, particularly in neighborhoods undergoing rapid economic growth. Results indicate that lower income and minority neighborhoods have fewer retail establishments, smaller average establishments, a higher proportion of “unhealthy” restaurants, and in certain cases, less diversity across retail subsectors. In addition, the rate of retail growth between 1998 and 2007 has been particularly fast in neighborhoods that were initially lower valued and experienced relatively high housing price appreciation compared with the city overall.

Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets in the United States

Many local governments are adopting inclusionary zoning (IZ) as a means of producing affordable housing without direct public subsidies. In this paper, panel data on IZ in the San Francisco metropolitan area and suburban Boston are used to analyse how much affordable housing the programmes produce and how IZ affects the prices and production of market-rate housing. The amount of affordable housing produced under IZ has been modest and depends primarily on how long IZ has been in place. Results from suburban Boston suggest that IZ has contributed to increased housing prices and lower rates of production during periods of regional house price appreciation. In the San Francisco area, IZ also appears to increase housing prices in times of regional price appreciation, but to decrease prices during cooler regional markets. There is no evidence of a statistically significant effect of IZ on new housing development in the Bay Area.

Neighbourhood differences in retail turnover: Evidence from New York City

Urban neighbourhoods are defined as much by their commercial character as their residential; retail services not only provide material needs for those living nearby, but less-tangible social and cultural capital as well. It is reasonable to expect, then, that excessive churn in these businesses can threaten the stability of a neighbourhood. Using a longitudinal data set on mixed-use neighbourhoods in New York City, we test whether or not neighbourhoods of varying circumstances and characteristics experience different degrees and types of retail turnover. Results suggest that there are meaningful differences in retail turnover across neighbourhoods. Retail turnover is directly associated with the type of business activity, commercial infrastructure and the neighbourhood’s consumer profile. However, when all three sets of factors are considered simultaneously in a regression analysis, consumer-related characteristics explain turnover more than those related to the local commercial environment. Specifically, businesses that provide necessity and more frequently consumed goods/services are more stable and chain establishments are more likely to venture into markets with some housing price discounts, growth potential and possibly less organised opposition. Neighbourhoods with less (and more heterogeneous) general retail (as opposed to food service) concentration, as well as bigger businesses, are more stable. More importantly, bigger households and higher shares of white residents are most strongly associated with less retail churn, and population growth is the strongest predictor of more turnover.

Do Homeowners Associations Mitigate or Aggravate Negative Spillovers from Neighboring Homeowner Distress

Experiences reveal that the monitoring costs of the foreclosure crisis may be non-trivial, and smaller governments may have more success at addressing potential negative externalities. One highly localized form of government is a homeowners’ association (HOA). HOAs could be well suited for triaging foreclosures, as they may detect delinquencies and looming defaults through direct observation or missed dues. On the other hand, the reliance on dues may leave HOAs particularly vulnerable to members’ foreclosure. We examine how property prices respond to homeowner distress and foreclosure within HOA communities in Florida. We combine datasets of HOAs, sales and aggregate loan delinquency and foreclosures from 2000 through 2008. We find properties in HOAs are relatively less impacted by more distressed neighbor homes compared to non-HOA properties, but only when considering less severe delinquency rates. We also find that negative price effects from higher delinquency exposure rates are ameliorated for properties in larger and newer HOAs.

Do Homeowners Associations Affect Citywide Segregation? Evidence From Florida Municipalities

Homeowners associations (HOAs) have become one of the most popular housing options, offering residents supplemental services, amenities, as well as exclusivity and protection. HOAs are touted for their potential to improve the match between household preferences and local services, but denounced for, among other things, their tendency to facilitate residential segregation. Yet, despite growing claims, these propositions have not been rigorously tested. The expectation is that if households do sort into HOAs based on income or race/ethnicity, then these associations can affect segregation by encouraging exclusive and homogeneous living environments. However, HOAs may actually offer a unique vehicle for racial and/or economic mixing or, at the other extreme, they may not influence segregation if residents do not rely on HOAs to sort along racial or economic lines. Unlike previous studies, the current analysis observes jurisdictions over multiple decades in an attempt to better identify whether the growth in HOAs is driving changes in segregation. Using a unique, longitudinal database of HOAs in Florida and multiple measures of segregation, this article tests the effect of HOAs on jurisdiction racial/ethnic and economic segregation. Results from both ordinary least squares and instrumental variable regressions indicate that an increase in HOA presence exacerbates black–white and Hispanic–white residential segregation. Any segregation, however, is tempered by the concentration of HOA units in larger communities. On the contrary, there is no significant effect on income segregation; this suggests that HOAs do not intensify existing tendencies toward income sorting.

Practice Makes Perfect: Teaching Policy Analysis through Integrated Client-Based Projects

The role of the client in policy analysis has been shifting in the professional field and in academia. In this paper, I reflect on the client orientation of graduate studies in policy analysis. I propose a framework for teaching policy analysis that relies on theoretical foundations but also uses integrated practical application and client-oriented learning throughout the master’s curriculum. I then illustrate the framework’s application through a sample of highly client-integrated graduate programs in public affairs, focusing particularly on the policy analysis curriculum at The New School’s Milano School of International Affairs, Management, and Urban Policy. Evidence suggests that an integrated and continuous client-based approach is the exception; most schools with a client component relegate it to a single capstone at the end of the degree, and few publicize the client work as central to the program. Through a continuous client-based approach, students get repeated practice at real-time policy analysis, learn how to adeptly construct an evidence-based and coherent argument for a variety of issues, and explore ways to confidently communicate their analysis and recommendations succinctly and persuasively in written and verbal form. The integrated client-based curriculum creates value not only for the students, but for the outside clients and the school overall.

Inclusionary Zoning to Support Affordable Housing

Inclusionary zoning (IZ), also known as inclusionary housing or incentive zoning, is a class of policies that make use of land-use planning and zoning regimes to mandate or encourage the production of affordable housing from market-rate housing developers. The structure of programmes varies greatly within and across countries. IZ programmes are most common in the United States, but similar types of policies have also been adopted internationally. There exists little systematic research on the impact of these programmes on affordable housing production and local housing markets. Still, IZ has become a well-known and politically viable tool for locally driven social housing production.

Is the ‘Shop Around the Corner’ a Luxury or a Nuisance? The Relationship between Income and Neighborhood Retail Patterns

Affluent neighborhoods present a potentially attractive location for retail establishments because of their higher purchasing power and demand for a wide range of specialized goods and services. However, if high income households perceive retail in general – or certain types of retail, such as Big Box stores – as an undesirable use, they may be able to block commercial development through zoning and the political process. In thispaper we shed light on these issues by examining the relationship betweenneighborhood income and several different types of retail presence for 58 large U.S metropolitan areas. We combine detailed data from the National Establishment TimeSeries database on retail establishments and employment, by industry category and firm type, with Census data on ZCTA income and demographics. Results indicate that retail density varies with income for certain retail types, such as food service and chain supermarkets and drugstores. In addition, average establishment size increases with income for all retail types. Retail density increases with population density, as expected, and decreases with distance to CBD and with share of owner-occupied housing.

What are the Financial Implications of Public Quality Disclosure? Evidence from New York City’s Restaurant Food Safety Grading Policy

Grading schemes are an increasingly common method of quality disclosure for public services. Restaurant grading makes information about food safety practices more readily available and may reduce the prevalence of foodborne illnesses. However, it may also have meaningful financial repercussions. Using fine-grained administrative data that tracks food safety compliance and sales activity for the universe of graded restaurants in New York City and its bordering counties, we assess the aggregate financial effects from restaurant grading. Results indicate that the grading policy, after an initial period of adjustment, improves restaurants’ food safety compliance and reduces fines. While the average effect on revenues for graded restaurants across the municipality is null, the graded restaurants located geographically closer to an ungraded regime experience slower growth in revenues. There is also evidence of revenue convergence across graded and ungraded restaurants in the long term.