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Is Affordable Housing Moving Mobile? Analyzing the Impact of COVID-19 on Demand for Manufactured Housing
By Jair Coleridge Soman Alleyne
As demand for affordable housing continues to increase in America, manufactured homes provide a private solution to this problem. Research has shown that manufactured home prices are largely dependent on the price of local housing substitutes as well as other geographic hedonic factors. This paper looks at the impact of Covid-19 on the manufactured housing market to determine the effects that economic shocks have on the demand for manufactured housing. Conditional on wanting to buy a house, we use a logistic model to examine the probability that an individual purchases a manufactured home and whether this probability increases at times of high unemployment and economic uncertainty. Due to the nature of our data, although the impact of Covid as a disease is difficult to measure, we do find decreased income and increased unemployment to be a factor increasing the likelihood of purchasing a manufactured home. We also find that in 2020, demand for manufactured housing increased significantly compared to the years prior.
Advisors: Professor Charles Becker, Professor Michelle Connolly | JEL Codes: R2, R21, I32
Hedonic Pricing in the Sneaker Resale Market
By Kevin Ma and Matthew Treiber
This paper explores the secondary resale market for high-end and limited-edition sneakers, specifically analyzing the determinants that affect what value sneakers trade for in the secondary market. While it is common knowledge that the sneaker resale market is a thriving and active secondary market, there is little to no empirical research about what exactly causes such sneakers to sell for exorbitant prices in the resale market. The study utilizes a hedonic pricing approach to investigate the determinants of sneaker resale price. We use a dataset of sneaker resale transactions from the online marketplace StockX between the years of 2016 and 2020 as the basis for our research. After analyzing the results, we have determined that the amount of “hype” that surrounds a sneaker as well as supply scarcity are statistically significant factors when determining the resale price premium a particular sneaker commands in the secondary market. This work adds to the sparse literature on the sneaker resale industry and brings an econometrics-approach to determining the price a given pair of sneakers commands in the resale market.
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Advisors: Professor Kyle Jurado, Professor Michelle Connolly, Professor Grace Kim| JEL Codes: C2, C20, J19
Exceeding the Threshold: Analysis of Public Information Transfer using Instrumental Variables
By Gabrielle Inder
This paper examines how information transfer about contamination levels found at brownfield sites capitalizes into nearby property values. More specifically, a hedonic model is used to test the impact on housing transaction prices when a binary measure (i.e. exceeding a threshold or not) or a continuous measure (i.e. chemical levels) is used. In the analysis, I exploit the variation in the contaminant thresholds, caused by regulatory conditions defined by the state of Massachusetts, holding the contaminant level constant. As thresholds are tied to neighborhood attributes in areas surrounding brownfields, threshold exceedance is potentially correlated to unobserved factors that impact housing values. An instrumental variables approach is used to create variation in threshold
exceedance through the use of an instrument that measures the presence to underground aquifers. After instrumenting for threshold exceedance, my estimates indicate that a 10.8% decrease in housing values occurs when a contaminant threshold is exceeded, while the continuous measures of toxicity indicate a negative but insignificant effect. These findings suggest that policy makers should consider information conveyance when creating policies to inform homeowners of pollution presence, as improved information provision may increase public awareness about local environmental concerns.
Advisor: Christopher Timmins, Michelle Connolly | JEL Codes: C26, Q5, Q53 | Tagged: Brownfields, Hedonic Analysis, Housing Markets, Instrumental Variables, Pollution
