This chapter compares the trajectory of housing prices in adjacent neighborhoods separated by a municipal border. In each of these pairs, one neighborhood is located within the city limits and the other is just across the border into the suburbs. The housing stock and local attributes of these neighborhoods were virtually identical, but residents on either side of the municipal border were assessed different property tax rates and had access to a different set of public goods. This chapter shows that the price premium associated with suburban units increased at the border as the black population rose in the city from 1960 to 1980, even though the racial composition of the neighborhoods under consideration was little changed. This pattern suggests that the decline in the demand for city residence with black in-migration was, in part, due to fiscal/political changes at the citywide level.