The fibre broadband housing premium across three US States
ABSTRACTThis paper meshes 1.7 million housing transactions across three US states (Iowa, Minnesota and Texas) between 2015 and 2021 with data on broadband infrastructure to evaluate the impact of fibre broadband availability on home prices. This was a period of dramatic fibre growth in these states:...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Regional Studies, Regional Science |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/21681376.2024.2305951 |
| _version_ | 1797320548895686656 |
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| author | Brian Whitacre |
| author_facet | Brian Whitacre |
| author_sort | Brian Whitacre |
| collection | DOAJ |
| description | ABSTRACTThis paper meshes 1.7 million housing transactions across three US states (Iowa, Minnesota and Texas) between 2015 and 2021 with data on broadband infrastructure to evaluate the impact of fibre broadband availability on home prices. This was a period of dramatic fibre growth in these states: prior to 2019, fibre was only available to roughly 24% of the houses sold but rose to 54% in later years. A traditional hedonic pricing model that includes a wide array of housing characteristics and census block group-level fixed effects estimates the fibre premium at around 1% in all three states for the full 2105–2021 period. The fibre premium was higher in the earlier part of this period, likely reflecting its novelty during that time. A more rigorous instrumental variable approach estimates the fibre premium at 2% in Minnesota and 9% in Texas. A conservative national estimate of the increase in housing value from deploying ubiquitous fibre is $36 billion. |
| first_indexed | 2024-03-08T04:44:38Z |
| format | Article |
| id | doaj.art-43d4b80eb42d475ebae0540bba5191f3 |
| institution | Directory Open Access Journal |
| issn | 2168-1376 |
| language | English |
| last_indexed | 2024-03-08T04:44:38Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Regional Studies, Regional Science |
| spelling | doaj.art-43d4b80eb42d475ebae0540bba5191f32024-02-08T10:58:33ZengTaylor & Francis GroupRegional Studies, Regional Science2168-13762024-12-01111386210.1080/21681376.2024.2305951The fibre broadband housing premium across three US StatesBrian Whitacre0Department of Agricultural Economics, Oklahoma State University, Stillwater, OK, United StatesABSTRACTThis paper meshes 1.7 million housing transactions across three US states (Iowa, Minnesota and Texas) between 2015 and 2021 with data on broadband infrastructure to evaluate the impact of fibre broadband availability on home prices. This was a period of dramatic fibre growth in these states: prior to 2019, fibre was only available to roughly 24% of the houses sold but rose to 54% in later years. A traditional hedonic pricing model that includes a wide array of housing characteristics and census block group-level fixed effects estimates the fibre premium at around 1% in all three states for the full 2105–2021 period. The fibre premium was higher in the earlier part of this period, likely reflecting its novelty during that time. A more rigorous instrumental variable approach estimates the fibre premium at 2% in Minnesota and 9% in Texas. A conservative national estimate of the increase in housing value from deploying ubiquitous fibre is $36 billion.https://www.tandfonline.com/doi/10.1080/21681376.2024.2305951Fibre broadbandhedonic pricing modelinstrumental variablesR21R30 |
| spellingShingle | Brian Whitacre The fibre broadband housing premium across three US States Regional Studies, Regional Science Fibre broadband hedonic pricing model instrumental variables R21 R30 |
| title | The fibre broadband housing premium across three US States |
| title_full | The fibre broadband housing premium across three US States |
| title_fullStr | The fibre broadband housing premium across three US States |
| title_full_unstemmed | The fibre broadband housing premium across three US States |
| title_short | The fibre broadband housing premium across three US States |
| title_sort | fibre broadband housing premium across three us states |
| topic | Fibre broadband hedonic pricing model instrumental variables R21 R30 |
| url | https://www.tandfonline.com/doi/10.1080/21681376.2024.2305951 |
| work_keys_str_mv | AT brianwhitacre thefibrebroadbandhousingpremiumacrossthreeusstates AT brianwhitacre fibrebroadbandhousingpremiumacrossthreeusstates |