Cuts to fire protection funding initially have a larger effect on home prices than crime, school quality or environmental quality, but the short-term decreases don't persist, University of Cincinnati economists found.
David Brasington, PhD, and Olivier Parent, PhD, professors of economics in UC's Carl H. Lindner College of Business, studied the effects of communities that don't pass fire protection renewal levies on housing values for a research article that was published in the journal Regional Science and Urban Economics.
Brasington was surprised by how cuts to fire protection funding had a greater effect on housing prices than other factors.
"We were really surprised about it having an effect and the magnitude of the effect, too," he said. "It was surprising to me, also, because schools get the bulk of funding, and police services are so important."
The Bearcat rides the front of a fire truck during the Findlay Market Opening Day Parade. Photo/Jay Yocis/UC Marketing + Brand
The Bearcat with a Cincinnati Fire Department truck. Photo/Ravenna Rutledge/UC Marketing + Brand
The effects of fire protection cuts are the opposite of cuts to park funding, which Brasington previously studied.
Brasington found Ohio communities that vote to renew parks and recreation spending see 13% higher home values three years after the vote than similar communities that voted against the tax renewals. While cuts to park funding initially didn't have an effect on house prices, the effects grew in the following years.
"The parks and recreation cuts take a while to be noticeable whereas the fire protection failure drops house prices right away but doesn't persist," Brasington said. "They're like the opposite sides of a coin."
For both parks and fire protection, Brasington said, the studies show that those services matter to residents and are worth the investment.
Featured image at top: The Bearcat with a fire truck. Photo/Ravenna Rutledge/UC Marketing + Brand
