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External validity of hedonic price estimates: Heterogeneity in the price discount associated with having Black and Hispanic neighbors
Author(s) -
Zhang Lei,
Leonard Tammy
Publication year - 2021
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12502
Subject(s) - hedonic pricing , economics , value (mathematics) , sample (material) , hedonic index , econometrics , price index , agricultural economics , microeconomics , statistics , mathematics , chemistry , chromatography
We examined the hedonic price of neighborhood racial composition across a sample of 180 US housing markets and compared heterogeneity in results. Statistically significant estimated price elasticities calculated at the mean ranged from −0.61 to 0.2 and −0.26 to 0.21, for increases in Black and Hispanic neighborhood proportion, respectively. Hedonic price discounts for Black neighborhoods were greater when land supply was more inelastic, when the land value share of the housing cost was greater, and in the southern portion of the United States. Hedonic price discounts associated with Hispanic neighborhoods exhibited no patterns relative to geography or housing supply factors.