Price Dynamics of Owner-Occupied Housing in the Baltimore–Washington Area: Does Structure Type Matter?
- Topics:
- Market Studies,
- Strategic Leasing
- Tags:
- Baltimore,
- Condominium,
- Finance,
- Investment
- Source:
- Fannie Mae
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Overview: This article investigates whether structure type matters to the price dynamics of owner-occupied housing units. We use a transaction assessment database merged with census data. After controlling for lot/structure characteristics, spatial, and temporal effects, our semi-log hedonic regressions suggest that town houses and condominiums are different from single-family detached houses in real price level and appreciation rates as well as price volatility. For our sample of data from the Baltimore–Washington metropolitan area from 1973 to 1997, a typical town house or condominium unit is significantly more affordable than a typical detached housing unit but costs more per additional square foot. Town houses appreciated less than detached houses in Montgomery County, MD and the city of Baltimore, while appreciating more in Baltimore County. Condominiums have the lowest rates of appreciation in all three locations. Condominiums also consistently exhibit higher price volatility.
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Format: PDF | Size: 155KB | Date: Jan 2003 | Pages: 38
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