Ownership Restriction and Housing Values: Evidence from American Housing Survey

20 Pages Posted: 16 Oct 2011

See all articles by Zhenguo (Len) Lin

Zhenguo (Len) Lin

Florida International University (FIU) - Hollo School of Real Estate

Yingchun Liu

Dept. of Finance, Insurance, Real Estate and Law, University of North Texas

Vincent Yao

Georgia State University - J. Mack Robinson College of Business

Date Written: January 15, 2010

Abstract

Amendments to the Fair Lending Act have exempted an age restriction on ownership from fair housing prohibitions. This paper studies the economic impact of such ownership restriction on housing values. Using American Housing Survey data, we find that there is a significant premium attached to the restrictive covenant when other factors are controlled. In particular, we find that imposing age restriction on ownership increases the housing values by anywhere from 10.5% to 12.7%. At the average house value, this is equivalent to a dollar amount between $14,642 and $17,399. The estimates are robust to different specifications in hedonic equations.

Keywords: Ownership restriction, Housing value

Suggested Citation

Lin, Zhenguo and Liu, Yingchun and Yao, Vincent, Ownership Restriction and Housing Values: Evidence from American Housing Survey (January 15, 2010). Journal of Real Estate Research, Vol. 32, No. 2, p. 201, 2010, Available at SSRN: https://ssrn.com/abstract=1944575

Zhenguo Lin (Contact Author)

Florida International University (FIU) - Hollo School of Real Estate ( email )

Miami, FL 33199
United States
3057799248 (Phone)

Yingchun Liu

Dept. of Finance, Insurance, Real Estate and Law, University of North Texas ( email )

1155 Union Circle #305340
Denton, TX 76203
United States

Vincent Yao

Georgia State University - J. Mack Robinson College of Business ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

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