Changes in the White-Black house value distribution gap from 1997 to 2005
||Eric Fesselmeyer, Le Kien and Seah Kiat Ying
||Changes in the White-Black house value distribution gap from 1997 to 2005
||19th Annual European Real Estate Society Conference in Edinburgh, Scotland
||This paper examines the white-black house value gap in the United States. Instead of using standard conditional mean analysis and decomposition methods (via OLS regression), we estimate and decompose the changes in the white-black house value gap from 1997 to 2005 using quantile regression. We find that studying the entire distribution of house values is important. Our results show that racial differences in house values are mostly explained by differences in the characteristics of white-owned and black-owned houses but that the variation in the racial differences across the house value distribution are explained by racial differences in the marginal pricecs of housing characteristics. Moreover, between 1997 and 2005, we find that black-owned houses increased in value faster than white-owned houses in the lower value percentiles while the opposite was true for high-valued houses. In this case, we conclude that these changese were not caused by racial differences in house characteristics but by differences in the appreciation rate of the marginal prices of housing characteristics.
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||Parallel Session F7
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