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Resident Age and Housing Search: Evidence From Hedonic Residuals

Author

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  • Larry DeBoer

    (Purdue University, West Lafayette, Indiana)

Abstract

Elderly people are likely to have higher housing market search costs than the population as a whole. Costly search increases the price paid by older persons for housing relative to its characteristics, and also increases the range of prices paid. To test this latter hypothesis, hedonic equations are estimated for six SMSAs using data from the Annual Housing Survey. The residuals of these hedonics represent variation in prices not explained by housing characteristics. It is found that the absolute variation of these residuals is positively related to resident age, which is evidence supporting the hypothesis that the elderly pay higher housing prices due to higher search costs. A possible policy response to this problem is to create a housing market information service directed at reducing the search costs of the elderly.

Suggested Citation

  • Larry DeBoer, 1985. "Resident Age and Housing Search: Evidence From Hedonic Residuals," Urban Studies, Urban Studies Journal Limited, vol. 22(5), pages 445-451, October.
    • Handle: RePEc:sae:urbstu:v:22:y:1985:i:5:p:445-451
    DOI: 10.1080/00420988520080761
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    References listed on IDEAS

    as
    1. J. J. McCall, 1970. "Economics of Information and Job Search," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(1), pages 113-126.
    2. Rothschild, Michael, 1973. "Models of Market Organization with Imperfect Information: A Survey," Journal of Political Economy, University of Chicago Press, vol. 81(6), pages 1283-1308, Nov.-Dec..
    3. James R. Follain JR & Stephen Malpezzi, 1981. "Another Look at Racial Differences in Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 18(2), pages 195-203, June.
    4. Courant, Paul N., 1978. "Racial prejudice in a search model of the urban housing market," Journal of Urban Economics, Elsevier, vol. 5(3), pages 329-345, July.
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    Cited by:

    1. Boeing, Geoff & Harten, Julia & Sanchez-Moyano, Rocio, 2023. "Digitalization of the Housing Search: Homeseekers, Gatekeepers, and Market Legibility," SocArXiv 643x2, Center for Open Science.
    2. Geoff Boeing, 2020. "Online rental housing market representation and the digital reproduction of urban inequality," Environment and Planning A, , vol. 52(2), pages 449-468, March.
    3. repec:osf:socarx:643x2_v1 is not listed on IDEAS
    4. repec:osf:socarx:pqgw7_v1 is not listed on IDEAS

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