Racial Housing Price Differentials and Neighborhood Segregation / Sebastien Box-Couillard, Peter Christensen.

Format:

Book

Author/Creator:

Box-Couillard, Sebastien.

Contributor:

Christensen, Peter.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w32815.

NBER working paper series no. w32815

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2024.

Summary:

We report evidence from the largest study of racial price differentials in the U.S. housing market, using a panel of 40 million repeat-sales transactions. We find

that price premiums facing Black and Hispanic homebuyers are ubiquitous and systematically higher in neighborhoods with a larger share of non-white residents.

We find that non-white buyers purchase at a premium when buying from sellers from outside their group. Consistent with predictions from theoretical models, we find higher premiums in supply-constrained markets. Leveraging exogenous variation in racial segregation, we find that racial segregation leads to larger price premiums paid by Black homebuyers.

Notes:

August 2024.

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