In an effort to reduce lead paint exposure in old homes, the residential lead paint hazard disclosure rule (Title X) was enacted in 1996 in the USA, which requires house sellers to disclose known lead-based paint hazards to buyers. The policy is designed to induce individuals’ improved maintenance behaviors through environmental information provisions. Minimizing the impact on housing prices is also the key component of the policy; a decline in the price of old homes because of the policy may lead to higher occupancy rates of the targeted low-income groups into lead paint risk homes. To explore the issue, this study examined whether the lead paint disclosure rule lowered values of old houses using the American Housing Survey data from 1993 to 2005 with the repeat sales method. The findings show the policy did not lower prices of old homes, as it intended.
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Urban Studies