Correctional Facility Establishments and Neighborhood Housing Characteristics

In the 1990s, the United States experienced unprecedented correctional population growth and accommodated the increase by building new facilities. Worries about the negative effect of such facilities on property values were a primary concern and complicated the siting of facilities. The aim of this study was to examine whether establishing correctional group quarters in urban neighborhoods changed housing characteristics. Propensity score matching was used to estimate the effect of establishing a correctional group quarter between 1990–2000 on 2000 median property values, median rent, home ownership rates, and vacancy rates for 12,790 neighborhoods in 124 large U.S. cities. Housing outcomes in neighborhoods with correctional facility sitings did not differ from what would be expected if such establishments were not created. This finding held regardless of the correctional facility type. The concern of declining property values as a result of the introduction of correctional group quarters populations in neighborhoods is generally unwarranted