Here is an abstract of a study about a community in Arizona that lost it's age-restricted status. The home price premium the residents enjoyed because of the age-restricted status deflated within 12 to 18 months. Note that Youngtown's age restrictions were enacted through local zoning while The Villages age restriction is based on deed restrictions.
Loss of Age-Restricted Status and Property Values: Youngtown Arizona
Karl L. Guntermann
Arizona State University - Supply Chain Management
Gareth Thomas
Arizona State University
Journal of Real Estate Research Vol. 26, No. 3, 2004
Abstract:
This study finds evidence of a large premium in Youngtown Arizona house prices that persisted over time and could be attributed to the town's age-restricted status. Age restrictions may act as a signal that the community provides facilities and services that meet the needs of the senior population and the assurance that those facilities and services will be available in the future. This assurance reduces uncertainty for future owners and it is the reduced uncertainty that is capitalized into house prices. The loss of the age restriction resulted in the elimination of the premium over approximately twelve to eighteen months.
The complete study can be viewed here: http://www.allbusiness.com/accountin...1014230-1.html
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Brockton, MA 1946-49 * Fort Lauderdale 1950-66 * Northern Virginia (Army) 1967-69 * North Lauderdale 1970-72 * Coconut Creek 1973-87 * St. Louis 1988-89 # Northern Virginia (again) 1990-2000 * Destin, FL 2001-08 * The Villages - Amelia/Hadley
Last edited by gfmucci; 09-27-2008 at 06:18 PM.
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