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Determinants of interstate differentials in the cost of housing, 2006

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  • Richard J. Cebula
  • Michael Toma

Abstract

This empirical study investigates determinants of interstate differentials in the cost of housing for the year 2006. While the literature on geographic cost-of-living differentials is well developed, the literature on geographic cost-of-housing (as opposed to housing-price) differentials is much less so. Housing costs consist of the price of housing per se for owners or rental payments per se for renters plus utility costs. The significance of this research is elevated by the fact that the cost of housing is the main driver of cost-of-living differences between states. The OLS results imply that the cost of housing in a state is positively a function of the state's median family income, its heating degree days, and its mean January temperature, and negatively a function of toxic waste releases in the state, the state's property crime rate, and the presence of right-to-work laws in the state.

Suggested Citation

  • Richard J. Cebula & Michael Toma, 2010. "Determinants of interstate differentials in the cost of housing, 2006," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 153-157, January.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:2:p:153-157
    DOI: 10.1080/13504850701719900
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    References listed on IDEAS

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    1. Cebula, Richard J., 1993. "The impact of living costs on geographic mobility," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(1), pages 101-105.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. James A. Kurre, 2003. "Is The Cost Of Living Less In Rural Areas?," International Regional Science Review, , vol. 26(1), pages 86-116, January.
    4. Richard J. Cebula, 1980. "Determinants of Geographic Living-Cost Differentials in the United States: An Empirical Note," Land Economics, University of Wisconsin Press, vol. 56(4), pages 477-481.
    5. Walter W. McMahon, 1991. "Geographical Cost of Living Differences: An Update," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 426-450, September.
    6. Richard J. Cebula, 1978. "An Empirical Note on the Tiebout-Tullock Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(4), pages 705-711.
    7. Richard J. Cebula, 1989. "The Analysis of Geographic Living-Cost Differentials: A Brief Empirical Note," Land Economics, University of Wisconsin Press, vol. 65(1), pages 64-67.
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    Cited by:

    1. Scott Loveridge & Dusan Paredes, 2018. "Are Rural Costs of Living Lower? Evidence from a Big Mac Index Approach," International Regional Science Review, , vol. 41(3), pages 364-382, May.

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