The Impact on Housing Values of Restrictions on Rights of Ownership: The Case of an Occupant's Age |
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Authors: | A. Quang Do G. Grudnitski |
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Affiliation: | San Diego State University, San Diego, CA 92182-0094 or .;San Diego State University, San Diego, CA 92182-0094 |
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Abstract: | With the exception of anecdotal information, little is known about the specific effects on the value of a house because its ownership is restricted to people older than a certain age. This article provides an empirically-derived assessment of the impact on the selling price of single-family residences when their ownership is age restricted. To determine the effect on the sales price of age-restricted houses, a standard hedonic pricing model is applied to a sample of 371 sales transactions drawn from a suburban area of a large city. The results indicate that an age restriction placed on houses decreases their value by 6%. This finding may be of interest to local land-use regulators, developers who are considering developing age-restricted houses and appraisers who wish to make value adjustments to these homes. |
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