3. How do people choose
neighborhoods?
• Based on your preferences for…
– Schools/Education
• Many funded by taxes of neighborhood
– Crime
– Access to public services- tiebout sorting
– Transportation Network
– People choose to live around similar people- more comfortable
4. • Millennial movement to the city
• Future forecast of city economy
• Communication connections
• Social scene
• Environmental impact of city
5. What is important?
• More than 90 percent of respondents said that
providing equal chances for all people to get
ahead, through educational and economic
opportunities
• Racial and ethnic diversity elements of the
community
Source: http://www.theatlantic.com/business/archive/2015/03/what-do-americans-prioritize-when-
picking-a-place-to-live/387328/
7. Neighborhood Choice in the
Past
• Migration from urban cities to suburbs beginning in the interwar
and postwar eras (after GIs returned home)
– Federal government and banks provided millions in loans for
homeowners
• Racial residential segregation during suburbanization
– Homeownership primary way Americans accumulate wealth but…
– Redlining-denying mortgage services either directly of through
selectively raising prices to residents of certain areas based on racial
or ethnic makeup
8. • Certain urban immigrant communities (e.g. German,
Italian, Polish) limited to tenement housing
– Tenement housing-very small apartments with multi-family
dwellings and poor living conditions
– Many Americans were unwelcome to immigrants moving into
their communities
10. Where would you go to find affordable
housing on $20,000 with a family of 4?
• How would that change your decisions based on this
information? What would you refuse to give up?
Source: http://www.cbpp.org/research/chart-book-federal-housing-spending-is-poorly-matched-to-need#Five
18. School district
• The quality of the school district is one of the first
things home buyers evaluate before making a
purchase
• In fact, quality of primary school education is
positively correlated with house prices
• A good home in a good school district has the benefit
of maintaining its value, which helps in thinking of
selling for the future
Source: “Nonlinear Effects of School Quality on House Prices”, Chiodo, Hernández-Murillo, and Owyang, 2010
22. Facts about the City of Cincinnati
• Cincinnati has…
– the 27th largest metro area in the USA
– a lower cost of living than the USA average
Images taken from http://www.law.uc.edu/sites/default/files/Local%20Housing%20Options.pdf
23. What do demographic classes
seek?
• Young Professionals
– An authentic urban experience in hip, edgy
districts
• Entry-level Professionals
– Value in the proximity to employment
cores/amenities
• Empty Nesters/Never Nesters
– Luxury upscale units close to culture and events
Source: http://choosecincy.com/assets/uploads/files/city_pdf18162.pdf
24. School district and house prices
• The Village of Indian Hill school district
– Rated #1 in the Cincinnati area
– House prices in the village
• Wyoming, Sycamore SDs
Source: https://k12.niche.com/rankings/public-school-districts/best-overall/m/cincinnati-metro-area/
25. • Residents here choose to live in areas with
development and growth opportunities
• The City of Cincinnati is committed to focusing on
economic development initiatives and investment
primarily in the areas of
– Downtown
– Over-the-Rhine
– Uptown
26. Uptown
• the leading job creation center in the City of
Cincinnati
• composed of the neighborhoods CUF,
Corryville, Mount Auburn, Clifton
• University of Cincinnati – 2nd
largest
Cincinnati MSA-employer*
*Based on a definition given here: http://choosecincy.com/datacenter/employers
