Are New Homes Special?

Authors

N. Edward Coulson, University of Nevada, Las VegasFollow
Adele C. Morris, The Brooking InstitutionFollow
Heleb R. Neill, University of Nevada, Las VegasFollow

Document Type

Article

Publication Date

4-7-2016

Publication Title

Real Estate Economics

Volume

47

Issue

3

First page number:

784

Last page number:

806

Abstract

This article describes alternative ways of identifying new homes and, using a large dataset of property sales in Las Vegas, Nevada, tests for the extent to which new homes sell at a price premium relative to otherwise similar existing homes. We also investigate whether the results differ across time and location, including before and after the housing bust. Our results suggest that price premia for new homes arise primarily in circumstances in which the supply of new houses is relatively low. In some cases rising to over 20% relative to otherwise similar existing homes. When new homes are plentiful, they are not special and the premium disappears.

Disciplines

Real Estate

Language

English

Repository Citation

Coulson, N. E., Morris, A. C., Neill, H. R. (2016). Are New Homes Special?. Real Estate Economics, 47(3), 784-806.
http://dx.doi.org/10.111/1540-6229.12165