The majority of studies examining the impact of group homes on neighborhood property values have found that group homes do not adversely effect property values. In our study of seven group homes neighborhoods in DuPage County, Illinois, we find thatproperties which are proximate to group homes experience a decline in value following the announcement of a group home's pending establishment. In our analysis, observations across time and space are incorporated into a format that is similar to an eventstudy. Our model is the first in this literature to accommodate different price levels and appreciation rates across neighborhoods.
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