Keywords
quantity restrictions, student housing prices, neighborhood externalities
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.
Original Publication Citation
Munneke, H., C.F. Sirmans, B. Slade, and G. Turnbull, 2014, Housing Regulation, Externalities, and Residential Property Prices, Real Estate Economics, Volume 42, Issue 2, pp. 422-456.
BYU ScholarsArchive Citation
Munneke, Henry J.; Sirmans, C. F.; Slade, Barrett A.; and Turnbull, Geoffrey K., "Housing Regulation, Externalities and Residential Property Prices" (2014). Faculty Publications. 8913.
https://scholarsarchive.byu.edu/facpub/8913
Document Type
Peer-Reviewed Article
Publication Date
2014
Publisher
Real Estate Economics
Language
English
College
Marriott School of Business
Department
Finance
Copyright Use Information
https://lib.byu.edu/about/copyright/