ABSTRACT
Two arguments are usually advanced to uphold the belief that nonwhite entry depresses property prices. The first states that such entry converts neighborhoods from low density and high quality maintenance to high density and low quality maintenance, resulting in rapid physical deterioration and a depreciation of even those homes that have been well maintained. The second argument declares that nonwhite entry reduces prices because of panic selling. The foregoing analysis shows clearly why property prices did not react to nonwhite entry in the way most people in the real estate profession expect them to react. Where racial transition is accompanied by increased density or lower levels of income and occupational status the effects of these factors upon property prices cannot be analytically separated from the effect of race per se. When a builder revealed his plans to sell some new homes to Negroes, local residents caused a furor, stating that they feared falling property prices.
