Full Citation

Title: The Dynamics of House Price Responsiveness and Locational Sorting: Evidence from Air Quality Changes

Citation Type: Journal Article

Publication Year: 2015

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Abstract: Despite extensive use of housing data to reveal valuation of non-market goods, the process of house price adjustment 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 prices and preference-based sorting in response to air quality changes caused by differential regulatory pressure from the 1990 Clean Air Act Amendments. The results suggest that owner-occupied units capitalize changes quickly, whereas rent prices lag behind amenity levels. The delayed but sharp rent response temporally coincides with evidence of sorting, indicating a strong link between location choices and price dynamics.

Url: http://www.sciencedirect.com/science/article/pii/S0166046215000198

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Authors: Lang, Corey

Periodical (Full): Regional Science and Urban Economics

Issue:

Volume: 52

Pages: 71-82

Data Collections: IPUMS NHGIS

Topics: Housing and Segregation, Land Use/Urban Organization, Other

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