School Quality and Housing Values

Abstract

This paper uses a mulitplicative heteroskedasticity corrected hedonic equation to examine the issue of school quality and housing values within the city of Oklahoma City. The issue of whether homebuyers respond favorably to quality was explored. In addition to this, different measures of school quality were investigated to determine which measure was the most valid to a homebuyer when making their housing purchase. The results presented in this paper seem to indicate that the homebuyer places greater value on the socioeconomic makeup of a school rather than the school test scores or racial composition. (R2l, H40)