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OCT -09 -1996 15:20 I BRIAN M OLSEN i Policy Analysis Paper 111 July 1. 1982 Page 3 C 612 286 2174 P.07 to prices these same hpmq; canmanded when sold again after the group home upened. Group home impact on surrounding property values has been examined in sev- eral parts of the United States and in a cross- section of neighborhoods. A Lansing, Michigan, study (Lansing Planning Dept., 1976) found that the average sale price of homes in a group home neighborhood was equal to, or higher than the sale price of homes in control neighborhoods. A Philadel- phia study (Dear, 1977) examined impact on a number of property transactions. homes, transactions 59 % occurred before dthe facility opened, uandf41%eafte .e There were of roup no declines in property values; indeed, homes adjacent to group homes exper- ienced the largest increase in value. An Ohio study of group home neighborhoods (Montgomery County Board of Men- tal Retardation, 1981) concluded that property values in these neighbor- hoods experienced the same increase or decrease in market price as homes alter the fgighborhoods, that close proximity to a group home dfd not ts the market value. and that group homes did not generate more property turnover„ Likewise, Likewise, in White Plains, New York. a 1976 study (Breslow, 1976) teacked property values for six months before and three years after the opening of a facility. The general trend in property values was compar- able to the control areas. • In the Philadelphia study, twelve neighborhoods which contained mental health group homes were examined. The investigators found that the number of sales was higher in group home neighborhoods. But the authors concluded that the mental health facilities were not the cause since the number of sales was not related to distance from the facility. Moreover, no decline in property values was found. In the most extensive study of property values to date (Wolpert. 1978) pro- perty value changes of 42 neighborhoods in New York State were analyzed by focusing on homes which were sold before the group home opened, and again, after the establishment of the home. Once again, no relation was found between group home placement and decline in property values or number of transactions. Even adjacent homes experienced the same changes in pro- perty values as homes in control neighborhoods. When a 1980 Columbus, Ohio, study (Mitchell and Wagner, 1980) used sale price as a percentage of asking price as the measure of property value, the authors concluded that the ratio did not decline in a neighborhood after a group home was established. Furthermore. homes in experimental neighbor- hoods sold just as quickly as homes in control neighborhoods. III. METHOD A complete list of group homes for the mentally retarded was compiled from Minnesota six or Welfare onlyahomessorle r OCT-07 -1996 15 :43 6126256619 Page 12 93'/. P.27