Forthcoming JRER Paper

Club Good Influence on Residential Transaction Prices
 

Abstract:

We examine residential real estate transactions in a market where an additional property right to a club good may have an influence on prices. We find that for single-family property, the market capitalizes approximately 50 percent of the full value of the extra property right. For condominiums, the amount reduces to approximately 25 percent. While these amounts are positive, they clearly are significantly lower than full value.