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Housing Regulation, Externalities and Residential Property Prices

Author

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  • Henry J. Munneke
  • C.F. Sirmans
  • Barrett A. Slade
  • Geoffrey K. Turnbull

Abstract

type="main"> 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

  • Henry J. Munneke & C.F. Sirmans & Barrett A. Slade & Geoffrey K. Turnbull, 2014. "Housing Regulation, Externalities and Residential Property Prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 42(2), pages 422-456, June.
  • Handle: RePEc:bla:reesec:v:42:y:2014:i:2:p:422-456
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    File URL: http://hdl.handle.net/10.1111/1540-6229.12026
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