Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney
|Author(s):||Anastasia Klimova and Adrian D. Lee|
|Date of publication:||March 2014|
|Working paper number:||181|
We measure the impact of murders on prices and rents of homes in Sydney. We find that housing prices fall by 3.9% for homes within 0.2 miles of the murder, in the year following the murder, and weaker results in the second year after a murder. We do not find any effects of murders on rents. Higher media coverage and being located closer to the murder (within 0.1 mile) have no additional effect on prices. Taken together, our findings suggest that proximity to a murder affects nearby property prices, particularly in the first year after the incident.
|Paper:||Download (Format: PDF, Size: 582 Kb)|
|Comments:||Published as: Klimova, A. and Lee, A. D., 2014, "Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney", Economic Record, 90(S1), 16-40.|
|Known citations:||Timar, L., Grimes, A. and Fabling, R., 2014, "That Sinking Feeling: The Changing Price of Disaster Risk Following an Earthquake", Working Paper: 14-13, Motu Economic and Public Policy Research.|