Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney

Economic Record, Forthcoming

42 Pages Posted: 27 Mar 2014

See all articles by Anastasia Klimova

Anastasia Klimova

University of Technology, Sydney - Economics Discipline Group

Adrian D. Lee

Deakin University - Department of Finance (Property and Real Estate)

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Date Written: March 24, 2014

Abstract

We measure the impact of murders on prices and rents of homes in Sydney. We find that housing prices fall by 3.9% for homes within 0.2 miles of the murder, in the year following the murder, and weaker results in the second year after a murder. We do not find any effects of murders on rents. Higher media coverage and being located closer to the murder (within 0.1 mile) have no additional effect on prices. Taken together, our findings suggest that proximity to a murder affects nearby property prices, particularly in the first year after the incident.

Keywords: Crime, murder, homicide, house prices, rent, hedonic model

JEL Classification: G14, K32, Q51, R2

Suggested Citation

Klimova, Anastasia and Lee, Adrian D., Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney (March 24, 2014). Economic Record, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2413357

Anastasia Klimova

University of Technology, Sydney - Economics Discipline Group ( email )

Haymarket
Sydney, NSW 2007
Australia

Adrian D. Lee (Contact Author)

Deakin University - Department of Finance (Property and Real Estate) ( email )

70 Elgar Road
Melbourne, VIC 3125
Australia

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