Neighborhood Confidence

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Abstract
Regression analysis applied to the longitudinal Urban Homesteading neighborhood residents data set provides mixed support for the widely held belief that in order to stabilize declining inner-city areas it is necessary to raise confidence levels of existing residents. Although confidence levels did explain movestay decisions, they did not account for variations in housing repair expenditures. The results also highlight the dilemmas facing policymakers trying to make residents optimistic. On the one hand, confidence was primarily a function of neighborhood population shifts and neighborhood social cohesion, over which local governments have little control. On the other, neither the homesteading program itself nor the quality of public services had any impact on confidence levels.

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