Spatio-Temporal Measurement of House Price Appreciation in Underserved Areas
- Topics:
- Market Studies,
- Strategic Leasing
- Source:
- Fannie Mae
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Overview: In this article, we examine house price appreciation rates and volatility in underserved areas. These include (1) census tracts with median income at or below 90 percent of the area median income (AMI) and (2) tracts with a minority concentration of at least 30 percent and median income up to 120 percent of AMI. Using 1972 to 1993 data from Dade County, FL, we estimate an expanded repeat-sales model that accounts for both space and temporal effects simultaneously. Stressing the exploratory nature of the study, we find that appreciation rates in underserved areas defined on the basis of median income are at least as high as those in other areas. Conversely, appreciation rates are lower in high minority areas than in the overall market. We also find that all underserved areas exhibit higher volatility than other areas, regardless of the definition used to designate them.
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Format: PDF | Size: 156KB | Date: Jan 2003 | Pages: 28
