Applying the Hedonic Pricing Model to the Prices of Single-Family Homes in the Oldest U.S. City, St. Augustine, Florida, Testing Whether Property Taxes Are Capitalized into Housing Prices

Fiorentina Angjellari-Dajci and Richard Cebula ()

MPRA Paper from University Library of Munich, Germany

Abstract: This empirical investigation applies a hedonic pricing model to determine whether property taxes have been capitalized into housing prices of single-family homes in city of St. Augustine, Florida housing market for single family homes. There were sufficient data in this context to study a total of 4,017 single-family houses for the six-year period from 2008 to 2013 period. The sales price and property tax levels are expressed real terms, i.e., in 2005 dollars. The semi-log estimation reveals, among other things, that the natural log of the real sales price of a single-family house in the St. Augustine area was in fact negatively affected by the city and county property tax level.

Keywords: housing prices; property tax capitalization; market mechanism (search for similar items in EconPapers)
JEL-codes: H24 H71 R21 R32 R38 (search for similar items in EconPapers)
Date: 2014-01-26
New Economics Papers: this item is included in nep-acc and nep-ure
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