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The Impact of High-Speed Broadband Availability on Real Estate Values: Evidence from United States Property Markets

20 Pages Posted: 1 Apr 2013 Last revised: 25 Apr 2015

Gabor Molnar

University of Colorado at Boulder

Scott Savage

University of Colorado at Boulder - Department of Economics

Douglas Sicker

Carnegie Mellon University; University of Colorado at Boulder - Department of Computer Science

Date Written: August 15, 2013

Abstract

This working paper presents a proof-of-concept study to show the possible impact of fiber-based broadband service availability on real estate values. The research goal is to find out whether people are willing to pay more for real estate located in areas where fiber is available than for a property that does not offer this amenity. Using information from the National Broadband Map and county assessors’ data for residential single-family houses from three Metropolitan Statistical Areas in the State of New York, we apply a hedonic pricing model to test the hypothesis. Early results suggest that fiber availability may indeed have a positive impact on real constant-quality house prices. Initial findings also urge additional research efforts to test the impact more thoroughly and to address issues due to potential endogeneity.

Keywords: broadband, Internet, real estate, valuation

JEL Classification: R21, L96, L98

Suggested Citation

Molnar, Gabor and Savage, Scott and Sicker, Douglas, The Impact of High-Speed Broadband Availability on Real Estate Values: Evidence from United States Property Markets (August 15, 2013). TPRC 41: The 41st Research Conference on Communication, Information and Internet Policy. Available at SSRN: https://ssrn.com/abstract=2241926 or http://dx.doi.org/10.2139/ssrn.2241926

Gabor Molnar (Contact Author)

University of Colorado at Boulder ( email )

University of Colorado Boulder
Boulder, CO 80309-0530
United States

Scott Savage

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-735-1165 (Phone)
303-492-1112 (Fax)

HOME PAGE: http://holiday.colorado.edu/savages/

Douglas Sicker

Carnegie Mellon University ( email )

Pittsburgh, PA 15213-3890
United States

University of Colorado at Boulder - Department of Computer Science ( email )

Boulder, CO
United States

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