The Effect of Age-Restricted Housing on Surrounding House Prices

Tanja Tyvimaa, Karen Gibler and Velma Zahirovic-Herbert

ERES from European Real Estate Society (ERES)

Abstract: The value of property in residential neighborhoods depends, in part, on the surrounding housing stock due to the effect of housing externalities. We investigate the impact of age-restricted housing on the price of neighboring condominiums in Tampere, Finland. A spatial pattern emerges in all our specifications: age-restricted housing implies an increase in surrounding housing values within a radius of 200 meters of up to 2.65% and up to another 2.47% increase for an additional age-restricted property within 400 meters. The positive spillover effect of owner-occupied age-restricted housing is larger than that of rental housing. The positive effect of senior houses on surrounding properties is diminished if the age-restricted property has an onsite nursing care unit. In addition, the positive effects of age-restricted houses are not extended to assisted living facilities.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2015-07-01
New Economics Papers: this item is included in nep-ure
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