Price discrimination in the housing market
There is little credible evidence on whether price discrimination exists in the housing market. Using a large sample of single-family home sales from Florida where both the race of the seller and buyer are known, we present evidence using the traditional and Harding et al. [HRS, Harding, J.P., Rosenthal, S., Sirmans, D.F., 2003. Establishing bargaining power in the market for existing homes. The Review of Economics and Statistics 85, (1) 178-188] approaches to empirical estimation. Omitted variable bias is found to plague the traditional approach. Results from following the HRS approach indicate that price discrimination exists by whites and Hispanics against blacks and Asians. Price discrimination against blacks is restricted to non-majority black neighborhoods and is smaller in magnitude in neighborhoods containing younger and more educated homeowners.
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- Clapp, John M & Giaccotto, Carmelo, 1992. "Estimating Price Trends for Residential Property: A Comparison of Repeat Sales and Assessed Value Methods," The Journal of Real Estate Finance and Economics, Springer, vol. 5(4), pages 357-74, December.
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- Donald Haurin & Christopher Herbert & Stuart Rosenthal, 2007. "Homeownership Gaps Among Low-Income and Minority Households," Working Papers 07-02, Ohio State University, Department of Economics.
- Myers, Caitlin Knowles, 2004. "Discrimination and neighborhood effects: understanding racial differentials in US housing prices," Journal of Urban Economics, Elsevier, vol. 56(2), pages 279-302, September.
- John Yinger, 1998. "Evidence on Discrimination in Consumer Markets," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 23-40, Spring.
- Chambers, Daniel N., 1992. "The racial housing price differential and racially transitional neighborhoods," Journal of Urban Economics, Elsevier, vol. 32(2), pages 214-232, September.
- Ihlanfeldt, Keith R., 2004. "The Use of an Econometric Model for Estimating Aggregate Levels of Property Tax Assessment Within Local Jurisdictions," National Tax Journal, National Tax Association, vol. 57(1), pages 7-23, March.
- Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April.
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