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Triskaidekaphobia and North American Residential Real Estate Prices

Author

Listed:
  • James E. Larsen

    (Wright State University)

Abstract

A previous study led its authors to conclude that superstition impacts price formation for single-family dwellings in the Vancouver area. Houses there with an address that ends in the "unlucky¨ number 13 are found to sell at a discount compared to otherwise similar houses. The primary objective of this study is to determine whether the previous results apply in another North American housing market. Hedonic regression is applied to single-family house transactions that occurred in Montgomery County, Ohio, to determine if houses with an address of 13 sold for different prices than houses that comprise the remainder of the sample. The same test is then conducted for houses with an address other than 13. No mispricing associated with the number 13 is discovered, but seven other addresses are found to be significantly related to price. As all but one of the significant house numbers identified in this study are not reputed to be particularly lucky or unlucky, we conclude that the price effects discovered are attributable to coincidence. The results of this first study to investigate the possibility of mispricing due to superstition about the number 13 in a residential property market in the United States are consistent with rational market behavior.

Suggested Citation

  • James E. Larsen, 2015. "Triskaidekaphobia and North American Residential Real Estate Prices," International Real Estate Review, Global Social Science Institute, vol. 18(3), pages 317-329.
    • Handle: RePEc:ire:issued:v:18:n:03:2015:p:317-329
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    References listed on IDEAS

    as
    1. Steven C. Bourassa & Vincent S. Peng, 1999. "Hedonic Prices and House Numbers: The Influence of Feng Shui," International Real Estate Review, Global Social Science Institute, vol. 2(1), pages 79-93.
    2. Nicole M. Fortin & Andrew J. Hill & Jeff Huang, 2014. "Superstition In The Housing Market," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 974-993, July.
    3. Kolb, Robert W & Rodriguez, Ricardo J, 1987. "Friday the Thirteenth: 'Part VII'--A Note," Journal of Finance, American Finance Association, vol. 42(5), pages 1385-1387, December.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Triskaidekaphobia When People Buy a House (podcast 102)
      by Marc Abrahams in Improbable Research on 2017-02-15 21:40:36

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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