School Quality and Real House Prices: Inter- and Intrametropolitan Effects

Haurin, Donald R.; Brasington, David M.

doi:10.1006/jhec.1996.0018

Cited by 231 publications

(118 citation statements)

References 48 publications

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“…Apartments farther away from the school but still in the same district could be priced less because parents living in those apartments would incur additional transportation costs in sending their children to the school. Haurin and Brasington (1996) and Downes and Zabel (2002) find the elasticity of house price with respect to school test score between 0.5 and 1 for US: a 10% increase in the average test score of a school raises house prices in the neighborhood by 5 to 10%. Zheng and Kahn (2008) report for Beijing that cutting distance to a core high school by half increases home prices by 7%.…”

Section: Methodology and Resultsmentioning

confidence: 99%

Hedonic Modeling for a Growing Housing Market: Valuation of Apartments in Complexes

Ayan¹,

Erkin²

2014

IJEF

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The share of apartment complexes in housing stock of major cities in the developing world has been increasing. They represent a different housing submarket whose growing importance necessitates further research. Using survey data on transaction records of real estate agents, we employ a hedonic pricing model to explore the factors influencing apartment prices in the Metropolitan Izmit area. The site of a major reconstruction effort following a strong earthquake, Izmit has been in the forefront of the changes taking place in the Turkish real estate sector in particular, and in urban housing in general. We aim to get better estimates by focusing the study on apartment complexes in Metropolitan Izmit, the major submarket in the area. The results reveal that structural characteristics of an apartment as well as amenities provided in an apartment complex are important determinants of price. Air quality and proximity to a good public school have a major effect on price as well. The findings suggest that the submarket could be segmented further geographically.

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Section: Methodology and Resultsmentioning

confidence: 99%

Hedonic Modeling for a Growing Housing Market: Valuation of Apartments in Complexes

Ayan¹,

Erkin²

2014

IJEF

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“…For example, Taylor [38], Cheshire and Sheppard [9], Weimer and Wolkoff [39], Hayes & Taylor [24], Bogart and Cromwell [5], and Haurin and Brasington [23] all find a positive relationship between standardized test scores and housing prices using cross-sectional analyses. 2 In addition, a few of these studies examine the effect of socio-economic and demographic composition of the student body.…”

Section: Introductionmentioning

confidence: 99%

Which school attributes matter? The influence of school district performance and demographic composition on property values

Clapp

Nanda

Ross

2008

Journal of Urban Economics

202

133

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Increasing levels of segregation in American schools raises the question: do home buyers pay for test scores or demographic composition? This paper uses Connecticut panel data spanning eleven years from 1994 to 2004 to ascertain the relationship between property values and explanatory variables that include school district performance and demographic attributes, such as racial and ethnic composition of the student body. Town and census tract fixed effects are included to control for neighborhood unobservables. The effect of changes in school district attributes is also examined over a decade long time frame in order to focus on the effect of long run changes, which are more likely to be capitalized into prices. The study finds strong evidence that increases in percent Hispanic has a negative effect on housing prices in Connecticut, but mixed evidence concerning the impact of test scores on property values. Evidence is also found to suggest that student test scores have increased in importance for explaining housing prices in recent years while the importance of percent Hispanic has declined. Finally, the study finds that estimates of property tax capitalization increase substantially when the analysis focuses on long run changes.Journal of Economic Literature Classification: D1, D4, I2, R2, R5.

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“…Finally, the literature on public service capitalization provides strong evidence that households are willing to pay for school quality in the form of higher housing prices. Many studies find a positive relationship between standardized test scores and housing prices using cross-sectional regressions, see for example Weimer and Wolkoff (2001), Haurin andBrasington (1996), andHayes andTaylor (1996). A few studies provide more compelling evidence by examining differences in housing prices across transactions for units with the same neighborhood attributes.…”

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confidence: 99%

Schools and Housing Markets: An Examination of School Segregation and Performance in Connecticut

Clapp¹,

Ross²

2004

The Economic Journal

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This paper examines the relationship between house price levels, school performance, and the racial and ethnic composition of Connecticut school districts between 1995 and 2000. A panel of Connecticut school districts over both time and labor market areas is used to estimate a simultaneous equations model describing the determinants of these variables. Specifically, school district changes in price level, school performance, and racial and ethnic compositions depend upon each other, labor market wide changes in these variables, and the deviation of each school district from the overall metropolitan area. The specification is based on the differencing of dependent variables, as opposed to the use of level or fixed effects models and lagging level variables beyond the period over which change is considered; as a result the model is robust to persistence in the sample. Identification of the simultaneous system arises from the presence of multiple labor market areas in the sample, and the assumption that labor market changes in a variable due not directly influence the allocation of households across towns within a labor market area. We find that towns in labor markets that experience an inflow of minority households have greater increases in percent minority if those towns already ahve a substantial minoritypopulation. We find evidence that this sorting proces is reflected in housing price changes in the low priced segment of the housing market, not in the middle and upper segments. Journal of Economic Literature Classification:D1, D4, I2, R2, R5Schools and Housing Markets: Clapp and Ross page 2 Schools and Housing Markets: An Examination of School Segregation and Performance in ConnecticutThe U.S. educational system is characterized by tremendous diversity in terms of both school composition and performance across school districts, but often by substantial homogeneity within districts especially within smaller suburban districts. This homogeneity is the result of a system in which access to education is primarily accomplished by obtaining residential housing. Considerable evidence exists indicating that school quality as captured by test scores or other performance measures is heavily influenced by the socio-economic characteristics of the school (Hanushek, 1986), and has a large influence on property values in each school district (Ross and Yinger, 1999). Moreover, the high price of housing in high quality school districts and the land use decisions in those districts influence the composition of those schools and may create substantial barriers to access for many low income and minority households. In this context, the price of housing and the characteristics of schools are determined simultaneously by a complex process in which households sort over the housing stock and across communities, and communities may intervene in this process by regulating land use. Almost all research in the area has been dedicated to address estimation biases caused by this simultaneity as opposed to direct attempts to study ...

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School Quality and Real House Prices: Inter- and Intrametropolitan Effects

Cited by 231 publications

References 48 publications

Hedonic Modeling for a Growing Housing Market: Valuation of Apartments in Complexes

Hedonic Modeling for a Growing Housing Market: Valuation of Apartments in Complexes

Which school attributes matter? The influence of school district performance and demographic composition on property values

Schools and Housing Markets: An Examination of School Segregation and Performance in Connecticut

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