Western Reserve Land Conservancy’s Thriving Communities Institute recently released a new study that analyzes the economic impact of residential demolition in the Cleveland area between 2009 and 2013. The report’s findings estimate a net benefit of $1.40 for every dollar invested in demolition activity, with larger benefits in high and moderately functioning markets and little to no benefit in weak markets. It also shows that mortgage foreclosure rates decreased in neighborhoods—across all income levels—where demolition activity took place. This study demonstrates the value of demolition as part of a comprehensive strategy to stabilize our communities that struggle with property vacancy. It provides information that can help guide demolition activity to make the most efficient use of limited resources. This study is very timely in light of Ohio Attorney General Mike DeWine’s release last week of an additional $3.8 million in demolition funding awards under the Moving Ohio Forward program.
The study was written by Nigel Griswold, Benjamin Calnin, Michael Schramm, Luc Anselin, and Paul Boehnlein, with support from Thriving Communities Institute, the Cleveland City Council, Ohio Attorney General Mike DeWine, the Eva L. and Joseph M. Bruening Foundation, Cleveland Neighborhood Progress, the Cuyahoga County Land Reutilization Corporation, and land banks throughout Ohio.