The Effect of Ecclesiastical Restructuring on Housing Prices: Evidence from the U.S.

Abstract

This study examines the impact of repurposed parishes of the Catholic Church on the prices of surrounding houses. We echo Glaeser (2000) and Swedberg (1990)’s view that non-market interac- tions could influence people’s economic decision. Parishes play vital roles in disseminating informa- tion, healing divided communities, and supporting the local economy (Grim, 2017). Nonetheless, about 1% of parishes are shuttered every year (Anderson et al., 2008). Numerous reports on dying congregations in the media (e.g., Merritt (2018) addresses the most recent account) and limited coverage of studies using micro-level religious buildings in the finance literature motivate us to fill the gap. Our objective is to quantify the effect of transformed religious identity of a community on local housing markets.