Full Citation

Title: THE DYNAMICS OF HOUSE PRICE CAPITALIZATION AND LOCATIONAL SORTING: EVIDENCE FROM AIR QUALITY CHANGES

Citation Type: Miscellaneous

Publication Year: 2012

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Abstract: Despite extensive use of housing data to reveal valuation of non-market goods, the process of house price capitalization remains vague. Using the restricted access American Housing Survey, a high-frequency panel of prices, turnover, and occupant characteristics, this paper examines the time path of capitalization and preference-based sorting in response to air quality changes caused by differential regulatory pressure from the 1990 Clean Air Act Amendments. The results demonstrate that owner-occupied units capitalize changes immediately, whereas rent capitalization lags. The delayed but sharp rent capitalization temporally coincides with evidence of sorting, suggesting a strong link between location choices and price dynamics.

Url: https://www2.census.gov/ces/wp/2012/CES-WP-12-22.pdf

User Submitted?: No

Authors: Lang, Corey

Publisher: University of Rhode Island

Data Collections: IPUMS NHGIS

Topics: Housing and Segregation, Natural Resource Management

Countries: United States