Exploring land banking, perceived neighborhood conditions, and social capital: A case of Detroit, Michigan, USA

As shrinking cities proliferate, land banks have emerged as critical instruments for managing urban vacancy. This study examines the effects of land-banking programs on social capital (SC), mediated by perceived neighborhood conditions (PNC). Based on 598 survey responses from residents in Detroit, Michigan, the study finds that Land Bank programs affect SC through both direct and indirect pathways. Own-It-Now shows a statistically significant total negative effect on SC, as small direct positive influences were outweighed by larger negative indirect effects through PNC. Side Lot demonstrates a contradictory mechanism, with positive direct effects offset by stronger negative indirect effects, resulting in no significant total outcome. Demolition exhibits a direct negative effect on SC. These findings suggest that strengthening SC requires reinvestment and reoccupation strategies that not only promote occupancy but also generate tangible improvements in neighborhood conditions.