Correlation of homeowners associations and inferior property value appreciation

• Authors: Leon S. Robertson
• Languages of publication: EN

Abstracts

EN

North to south migration in the U.S. and housing developers’ claims of benefits led to exponential growth in neighbourhood homeowners associations during recent decades. Sanctioned by state laws, association rules governing homeowners are usually initiated by developers who claim that the rules protect property values. But the claim is not supported by empirical analysis. Inflation adjusted annual percentage returns in consecutive sales of a sample of 900 most recent home sales in Duval County Florida, Pima County Arizona and St. Louis County Missouri during late 2017 and early-2018 were examined. The results revealed that the annual percentage returns on homes sold in homeowners associations were significantly less than those of homes in other neighbourhoods statistically controlling for property characteristics and prevailing economic conditions at the time of the original purchase. Correlates of home prices at any point in time are not predictive of percentage return from purchase to sale.

Keywords

EN

housing prices; homeowners association; neighbourhood association; community interest associations

Discipline

• SOCIOLOGY: SOCIOLOGY

• Publisher: Institute of Sociology, Czech Academy of Sciences
• Journal: Critical Housing Analysis
• Year: 2019
• Volume: 6
• Issue: 1
• Pages: 42-50
• Document type: ARTICLE

Contributors

author

Leon S. Robertson

• Critical Housing Analysis, redakce,Sociologický ústav AV ČR, v. v. i. Jilská 1, 110 00 Praha 1, Czech Republic