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Broadband's relationship to rural housing values

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  • Steven Deller
  • Brian Whitacre

Abstract

Using data for remote rural US counties (n = 887) we estimate the impact of broadband Internet access on median housing value. We account for spatial dependencies in the joint determination of investments in broadband access and housing values using a modified spatial three stage least squares (3SLS) estimator. The data support the central hypothesis that remote rural housing values are positively impacted by higher access. Our estimates suggest that there are declining returns to speed availability, with access to at least some type of Internet being more valuable than having only a very high‐speed connection accessible. Se utilizaron datos de condados rurales remotos (n = 887) de los EE.UU. para estimar el impacto del acceso a Internet de banda ancha en la mediana del valor de la vivienda. Se tomó en cuenta las dependencias espaciales en la determinación conjunta de las inversiones en el acceso a banda ancha y los valores de la vivienda, para lo cual se usó un estimador espacial modificado de mínimos cuadrados de tres etapas (3SLS, por sus siglas en inglés). Los datos apoyan la hipótesis principal de que los valores de las viviendas rurales remotas se ven afectados positivamente por un mayor acceso. Nuestras estimaciones sugieren que hay una disminución en el retorno respecto a la velocidad disponible, y que el acceso a al menos algún tipo de Internet es más valioso que tener sólo acceso a una conexión de muy alta velocidad. 本稿では、米国の辺境地域のカウンティ(n=887)のデータを用いて、住宅価格の中央値に対するブロードバンドインターネットアクセスの影響を推計する。改変した空間的三段階最小二乗法(three stage least squares :3SLS) による推定式を用いて、ブロードバンドアクセスと住宅価格への投資の共同決定における空間依存性を説明する。データは、より速いアクセスが辺境地域の住宅価格にプラスの影響を与えるという中心仮説を支持するものである。少なくとも、あるタイプのインターネットアクセスが、超高速ネット接続にアクセスできるだけのタイプよりも価値が高く、推定結果から、速さの利用可能性の利益が低下していることが示唆される。

Suggested Citation

  • Steven Deller & Brian Whitacre, 2019. "Broadband's relationship to rural housing values," Papers in Regional Science, Wiley Blackwell, vol. 98(5), pages 2135-2156, October.
    • Handle: RePEc:bla:presci:v:98:y:2019:i:5:p:2135-2156
    DOI: 10.1111/pirs.12450
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    Cited by:

    1. Roberto Gallardo & Brian Whitacre & Indraneel Kumar & Sreedhar Upendram, 2021. "Broadband metrics and job productivity: a look at county-level data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 161-184, February.
    2. Anil Rupasingha & John Pender & Ryan Williams, 2024. "Broadband and rural development: Impacts of the U.S. Department of Agriculture Broadband Initiatives Program on saving and creating jobs," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 698-721, April.
    3. Whitacre, Brian & Biedny, Christina, 2022. "A preview of the broadband fabric: Opportunities and issues for researchers and policymakers," Telecommunications Policy, Elsevier, vol. 46(3).
    4. Klein, Gordon J., 2022. "Fiber-broadband-internet and its regional impact—An empirical investigation," Telecommunications Policy, Elsevier, vol. 46(5).
    5. Steven Deller & Brian Whitacre & Tessa Conroy, 2022. "Rural broadband speeds and business startup rates," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 999-1025, May.
    6. Chloé Duvivier & Emma Cazou & Stéphanie Truchet‐Aznar & Cédric Brunelle & Jean Dubé, 2021. "When, where, and for what industries does broadband foster establishment births?," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1377-1401, December.
    7. Schmidt, Claudia & Han, Luyi & Khaleghi Moghadam, Arian & Goetz, Stephan J., 2023. "Impact of Broadband Adoption on Agritourism Operations in the United States," 2023 Annual Meeting, July 23-25, Washington D.C. 335731, Agricultural and Applied Economics Association.
    8. Gary A. Wagner & Hyun Ji Lee, 2024. "Does broadband affect local economic outcomes less than we thought? Micro evidence from Louisiana," Contemporary Economic Policy, Western Economic Association International, vol. 42(1), pages 68-93, January.
    9. Schmit, Todd M. & Severson, Roberta M., 2021. "Exploring the feasibility of rural broadband cooperatives in the United States: The new New Deal?," Telecommunications Policy, Elsevier, vol. 45(4).
    10. Han, Luyi & Wojan, Timothy R. & Goetz, Stephan J., 2023. "Experimenting in the cloud: The digital divide's impact on innovation," Telecommunications Policy, Elsevier, vol. 47(7).
    11. Whitacre, Brian & Gallardo, Roberto, 2020. "State broadband policy: Impacts on availability," Telecommunications Policy, Elsevier, vol. 44(9).
    12. Worden, David & Hambly, Helen, 2022. "Willingness to pay and pricing for broadband across the rural/urban divide in Canada," Telecommunications Policy, Elsevier, vol. 46(2).
    13. Biedny, Christina & Whitacre, Brian & Gallardo, Roberto, 2022. "Do ‘dig once’ and permitting policies improve fiber availability?," Telecommunications Policy, Elsevier, vol. 46(5).

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