Housing Regulation, Externalities, and Residential Property Prices

Real Estate Economics, Forthcoming

Posted: 3 Jan 2013

See all articles by Henry J. Munneke

Henry J. Munneke

University of Georgia - Department of Insurance, Legal Studies, Real Estate

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law

Barrett A. Slade

Brigham Young University; Independent

Geoffrey K. Turnbull

Georgia State University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: January 3, 2013

Abstract

This paper 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 non-student 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 non-student neighborhoods, with the quantity restriction reinforcing (offsetting) the student price premium (discount) at the boundary.

Keywords: land use regulation, housing supply, housing supply restriction, student externality

JEL Classification: R33, H23, R52

Suggested Citation

Munneke, Henry J. and Sirmans, C. F. and Slade, Barrett A. and Slade, Barrett A. and Turnbull, Geoffrey K., Housing Regulation, Externalities, and Residential Property Prices (January 3, 2013). Real Estate Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2196039

Henry J. Munneke (Contact Author)

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6254
United States
(706) 542-0496 (Phone)
(706) 542-4295 (Fax)

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law ( email )

Tallahasse, FL 32306
United States
850 644-4076 (Phone)

HOME PAGE: http://www.cob.fsu.edu/rmi

Barrett A. Slade

Brigham Young University ( email )

Marriott School 618 TNRB
Provo, UT 84602
United States
801-472-2082 (Phone)
801-472-2082 (Fax)

Independent

Geoffrey K. Turnbull

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-0419 (Phone)
404-651-2737 (Fax)

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