Housing Regulation, Externalities and Residential Property Prices

35 Pages Posted: 20 May 2014

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

University of Central Florida

Multiple version iconThere are 2 versions of this paper

Date Written: Summer 2014

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.

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 (Summer 2014). Real Estate Economics, Vol. 42, Issue 2, pp. 422-456, 2014, Available at SSRN: https://ssrn.com/abstract=2438999 or http://dx.doi.org/10.1111/1540-6229.12026

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

University of Central Florida ( email )

4000 Central Florida Blvd
Orlando, FL 32816-1400
United States

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