Economics at your fingertips  

The rise and effects of homeowners associations

Wyatt Clarke and Matthew Freedman

Journal of Urban Economics, 2019, vol. 112, issue C, 1-15

Abstract: In the U.S., nearly 60% of recently built single-family houses, and 80% of houses in new subdivisions, are part of a homeowners association (HOA). We construct the first near-national map of HOAs using publicly recorded mortgage records for single-family homes. We use these data to document the growth and characteristics of HOAs as well as to examine their relationship with housing prices. We find that houses in HOAs have prices that are on average at least 4%, or $13,500, greater than observably similar houses outside of HOAs. The HOA premium correlates with the stringency of local land use regulation, local government spending on public goods, and measures of social attitudes toward race. The data also paint a detailed picture of the people living in HOA neighborhoods, who are on average more affluent and racially segregated than those living in other nearby neighborhoods.

Keywords: Homeowners associations; Planned unit developments; Capitalization; Property values; Private government; Mortgages (search for similar items in EconPapers)
JEL-codes: H1 R3 R5 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.jue.2019.05.001

Access Statistics for this article

Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange

More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-06-15
Handle: RePEc:eee:juecon:v:112:y:2019:i:c:p:1-15