Housing Regulation,Externalities and Residential Property Prices |
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| Authors: | Henry J Munneke CF Sirmans Barrett A Slade Geoffrey K Turnbull |
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| Institution: | 1. University of Georgia, Terry College of Business, Department of Insurance, Legal Studies and Real Estate, , Athens, GA, 30602‐6255;2. Florida State University, College of Business, Department of Risk Management, Real Estate, and Legal Studies, , Tallahassee, FL, 32306;3. Brigham Young University, Marriot School of Business, Department of Finance, , Provo, Utah, 84602;4. University of Central Florida, College of Business, Department of Finance, , Orlando, Florida, 32816‐1400 |
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| Abstract: | 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. |
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