Housing Regulation, Externalities and Residential Property Prices

    Authors

    H. J. Munneke; C. F. Sirmans; B. A. Slade;G. K. Turnbull

    Comments

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    Abbreviated Journal Title

    Real Estate Econ.

    Keywords

    LAND-VALUE FUNCTIONS; RACIAL PREJUDICE; URBAN STRUCTURE; SEGREGATION; GRADIENTS; MODEL; DEMAND; VALUES; Business, Finance; Economics; Urban Studies

    Abstract

    This article examines the effects of quantity restrictions on residential property prices in the presence of neighborhood externalities. A Brigham Young University policy limiting students' location choices provides a natural experiment for studying the externality and quantity restriction effects on property values. A flexible hedonic model is used to control for nonstudent population spatial sorting by type. The estimates show significant positive quantity restriction and student agglomeration effects on student housing prices. There are also significant differences in the negative student externality across nonstudent neighborhoods, with the quantity restriction reinforcing (offsetting) the student price premium (discount) at the boundary.

    Journal Title

    Real Estate Economics

    Volume

    42

    Issue/Number

    2

    Publication Date

    1-1-2014

    Document Type

    Article

    Language

    English

    First Page

    422

    Last Page

    456

    WOS Identifier

    WOS:000335958900005

    ISSN

    1080-8620

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