House Price Impacts of Racial, Income, Education, and Age Neighborhood Segregation

26 Pages Posted: 10 Jun 2015

See all articles by David M. Brasington

David M. Brasington

University of Cincinnati - Department of Economics

Diane Hite

Auburn University - Department of Agricultural Economics and Rural Sociology

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business

Date Written: June 2015

Abstract

We study housing prices and neighborhood segregation. We advance the literature by (1) studying not just racial segregation like previous studies, but also segregation by age, income, and education level, (2) using a finer unit of geography to construct segregation measures, (3) incorporating spatial statistics, and (4) separating segregation effects from underlying population level effects. We find race segregation is positively related to house prices, with an elasticity of 0.19. In contrast, income and educational segregation reduce housing values, with elasticities of −0.23 and −0.21. By comparison, house age has an elasticity of −0.15. Age segregation is not generally capitalized.

Suggested Citation

Brasington, David M. and Hite, Diane and Jauregui, Andres, House Price Impacts of Racial, Income, Education, and Age Neighborhood Segregation (June 2015). Journal of Regional Science, Vol. 55, Issue 3, pp. 442-467, 2015. Available at SSRN: https://ssrn.com/abstract=2616545 or http://dx.doi.org/10.1111/jors.12173

David M. Brasington (Contact Author)

University of Cincinnati - Department of Economics ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

Diane Hite

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36849
United States
334-844-5655 (Phone)
334-844-5639 (Fax)

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business ( email )

Columbus, GA 31907-5645
United States

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