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Determinants of Interstate Differentials in the Real Median Price of Single Family Homes

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  • Cebula, Richard
  • Toma, Michael

Abstract

This empirical study investigates determinants of interstate real median home price differentials for the year 2005. While the literature on geographic cost-of-living differentials is well developed, the literature on geographic housing price differentials is much less so. Given the relatively large impact of housing prices on overall living costs, this research seeks to address this issue and shed light on specific factors influencing the real median price of housing across states. The ordinary least squares results imply that the real median price of a single-family home in a state is positively a function of the state's population growth rate, its per capita income, and its relative amount of shoreline on major bodies of water, and negatively a function of toxic waste releases in the state, the state's geographic area, and the presence of right-to-work laws in the state.

Suggested Citation

  • Cebula, Richard & Toma, Michael, 2006. "Determinants of Interstate Differentials in the Real Median Price of Single Family Homes," MPRA Paper 61410, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:61410
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    File URL: https://mpra.ub.uni-muenchen.de/61410/1/MPRA_paper_61410.pdf
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    References listed on IDEAS

    as
    1. Cebula, Richard J., 1993. "The impact of living costs on geographic mobility," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(1), pages 101-105.
    2. Cebula, Richard & Alexander, Gigi & Koch, James, 1991. "A Further Note on Determinants of Geographic Living-Cost Differentials," MPRA Paper 49397, University Library of Munich, Germany.
    3. Stephen M. Renas, 1980. "An Empirical Note on the Tiebout-Tullock Hypothesis: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(3), pages 619-623.
    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. repec:rre:publsh:v:34:y:2004:i:1:p:112-19 is not listed on IDEAS
    6. James A. Kurre, 2003. "Is The Cost Of Living Less In Rural Areas?," International Regional Science Review, , vol. 26(1), pages 86-116, January.
    7. Cebula, Richard J. & Alexander, Gigi M., 2006. "Determinants of Net Interstate Migration, 2000-2004," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-8.
    8. Richard J. Cebula, 1980. "Determinants of Geographic Living-Cost Differentials in the United States: An Empirical Note," Land Economics, University of Wisconsin Press, vol. 56(4), pages 477-481.
    9. Walter W. McMahon, 1991. "Geographical Cost of Living Differences: An Update," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 426-450, September.
    10. Richard J. Cebula, 1978. "An Empirical Note on the Tiebout-Tullock Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(4), pages 705-711.
    11. Richard J. Cebula, 1989. "The Analysis of Geographic Living-Cost Differentials: A Brief Empirical Note," Land Economics, University of Wisconsin Press, vol. 65(1), pages 64-67.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    housing prices; population growth; pollution; right-to-work laws;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • K2 - Law and Economics - - Regulation and Business Law
    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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