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Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney

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Abstract

We measure the impact of murders on prices and rents of homes in Sydney. We find that housing prices fall by 3.9% for homes within 0.2 miles of the murder, in the year following the murder, and weaker results in the second year after a murder. We do not find any effects of murders on rents. Higher media coverage and being located closer to the murder (within 0.1 mile) have no additional effect on prices. Taken together, our findings suggest that proximity to a murder affects nearby property prices, particularly in the first year after the incident.

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  • Anastasia Klimova & Adrian D. Lee, 2014. "Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney," Working Paper Series 21, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
    • Handle: RePEc:uts:ecowps:21
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    Cited by:

    1. Utpal Bhattacharya & Daisy Huang & Kasper Meisner Nielsen, 2021. "Spillovers in Prices: The Curious Case of Haunted Houses [Fire sales and house prices: evidence from estate sales due to sudden death]," Review of Finance, European Finance Association, vol. 25(3), pages 903-935.
    2. Levente Timar & Arthur Grimes & Richard Fabling, 2014. "That Sinking Feeling: The Changing Price of Disaster Risk Following an Earthquake," Working Papers 14_13, Motu Economic and Public Policy Research.
    3. Georgia Perks & Shiko Maruyama, 2016. "The "Flock" Phenomenon of the Sydney Lockout Laws: Dual Effects on Rental Prices," Working Paper Series 38, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
    4. Woei-Chyuan Wong & Adilah Azhari & Nur Adiana Hiau Abdullah & Chee Yin Yip, 2019. "Estimating the impact of crime risk on housing prices in Malaysia," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 13(5), pages 769-789, November.
    5. Melek Cigdem‐Bayram & David Prentice, 2019. "How Do Crime Rates Affect Property Prices?," The Economic Record, The Economic Society of Australia, vol. 95(S1), pages 30-38, June.
    6. Enrique Javier Burbano Valencia & María Isabel Zafra Sanz, 2017. "Homicidio y precios de la tierra: un análisis espacial en Santiago de Cali," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 40(113), pages 147-159, Mayo.
    7. Michele Battisti & Giovanni Bernardo & Andrea Mario Lavezzi & Giuseppe Maggio, 2022. "Shooting down the price: Evidence from Mafia homicides and housing prices," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 659-683, June.
    8. Michele Battisti & Giovanni Bernardo & Andrea Mario Lavezzi & Giuseppe Maggio, 2019. "Shooting down the price: evidence from mafia homicides and housing market volatility," Working Paper series 19-05, Rimini Centre for Economic Analysis.

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    More about this item

    Keywords

    Crime; murder; homicide; house prices; rent; hedonic model;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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