Abstract

https://ssrn.com/abstract=2241926
 


 



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


Gabor Molnar


University of Colorado at Boulder - Department of Economics

Scott Savage


University of Colorado at Boulder - Department of Economics

Douglas Sicker


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

August 15, 2013

TPRC 41: The 41st Research Conference on Communication, Information and Internet Policy

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.

Number of Pages in PDF File: 20

Keywords: broadband, Internet, real estate, valuation

JEL Classification: R21, L96, L98


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Date posted: April 1, 2013 ; Last revised: April 25, 2015

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

Contact Information

Gabor Molnar (Contact Author)
University of Colorado at Boulder - Department of Economics ( email )
University of Colorado Boulder
Boulder, CO 80309-0530
United States
3035321184 (Phone)
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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