Restrictive Land Covenants

JOURNAL OF REAL ESTATE FINANCE AND ECONOMICS, Vol 11 Issue 3

Posted: 5 Jul 1998

See all articles by William T. Hughes Jr.

William T. Hughes Jr.

MIT Realty Advisors

Geoffrey K. Turnbull

Georgia State University - Department of Economics

Abstract

Even though land use covenants are a pervasive feature in residential land markets, they are typically subsumed into the economist's picture of zoning and related land use regulation, In contrast to the traditional approach. We develop theory to explain the price spreads in the residential housing market. The model includes the list price of the home, the cost of the search, the standard deviation of offer prices, and TOM. Empirical tests using 3,597 sales for 25 months show a robust relationship of housing market spreads and these variables. Listing price and cost of search have the predicted positive coefficients,and the standard deviation of price offers if found to be negatively related to the price spread.

JEL Classification: R14, R52

Suggested Citation

Hughes, William T. and Turnbull, Geoffrey K., Restrictive Land Covenants. JOURNAL OF REAL ESTATE FINANCE AND ECONOMICS, Vol 11 Issue 3. Available at SSRN: https://ssrn.com/abstract=9002

William T. Hughes (Contact Author)

MIT Realty Advisors ( email )

250 Australian Avenue South Suite 400
407-820-1300 (Phone)
407-832-1622 (Fax)

Geoffrey K. Turnbull

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-0419 (Phone)
404-651-2737 (Fax)

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