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The Co-op Discount

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Abstract

Cooperative and condominium housing differ in several ways that might be expected to influence their pricing. Most but not all of these differences argue for a higher valuation for condominiums. Hedonic equations estimated on a national sample indicate that the price differential on the average condo/co-op unit in 1987 was 12%. Condos maintain a price premium under a variety of specifications, although its magnitude depends on the bundle of attributes being priced.

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Authors and Affiliations

  1. Department of Economics, Wayne State University, Detroit, MI, 48202

    Allen C. Goodman

  2. National Multi Housing Council, Washington, D.C, 20036

    John L. Goodman Jr.

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  1. Allen C. Goodman
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  2. John L. Goodman Jr.
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Goodman, A.C., Goodman, J.L. The Co-op Discount. The Journal of Real Estate Finance and Economics 14, 223–233 (1997). https://doi.org/10.1023/A:1007796723558

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  • DOI: https://doi.org/10.1023/A:1007796723558

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