Presentation Title

Finding the Real Value of a Home

Presentation Type

Oral Presentation

School

School of Sciences and Social Sciences

Discipline

Economics

Mentor

Marie Duggan

Date & Time

April 9th at 10:15 AM - 11:15 AM

Location

David F. Putnam Science Center, Room 161

Abstract

How do neighborhood characteristics such as school quality and crime, as well as macroeconomic conditions affect the selling price of a home? Literature examined also incorporates physical characteristics of a home that affect its value. La 2015 confirms that homebuyers are willing to spend more if a home is located closer to schools that score higher on standardized test. While Lynch and Rasmussen 2001 find that when controlling for physical characteristics, and macroeconomic conditions, crime rates prove to be statistically insignificant when determining sales prices of homes. Both pieces of literature suggest incorporating the average square feet of a home, which later enhanced our regression. Schools were ranked based on standardized test scores where one is the best; crime rates used are an index of total crimes ranging from larcenies to murder per 100,000 people. We found that school ranks, crime rates, and unemployment rates had inverse relationships with the dependent variable of 2011 home selling prices in eighty towns throughout Connecticut, while average square feet had a positive relationship.

Share

COinS
 
Apr 9th, 10:15 AM

Finding the Real Value of a Home

David F. Putnam Science Center, Room 161

How do neighborhood characteristics such as school quality and crime, as well as macroeconomic conditions affect the selling price of a home? Literature examined also incorporates physical characteristics of a home that affect its value. La 2015 confirms that homebuyers are willing to spend more if a home is located closer to schools that score higher on standardized test. While Lynch and Rasmussen 2001 find that when controlling for physical characteristics, and macroeconomic conditions, crime rates prove to be statistically insignificant when determining sales prices of homes. Both pieces of literature suggest incorporating the average square feet of a home, which later enhanced our regression. Schools were ranked based on standardized test scores where one is the best; crime rates used are an index of total crimes ranging from larcenies to murder per 100,000 people. We found that school ranks, crime rates, and unemployment rates had inverse relationships with the dependent variable of 2011 home selling prices in eighty towns throughout Connecticut, while average square feet had a positive relationship.