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Housing Attribute Preferences in a Northern Mexico Metropolitan Economy

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Abstract

Studies of the valuation of housing attributes have been conducted for numerous metropolitan markets. Empirical analyses of this nature for cities in Latin America and Mexico are less common. This study utilizes data for 175 new houses in Ciudad Juarez, a major metropolitan economy in northern Mexico, to estimate a hedonic pricing model. All units in the sample were completed and sold between November 2006 and April 2007. For each house, a total of 14 characteristics relating to structure and location are employed as explanatory variables. Estimation results indicate that the structural characteristics play bigger roles than the neighborhood amenities. Surprisingly, neighborhood parks are found to lower housing values.

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Acknowledgements

Financial support was provided by El Paso Electric Company, Hunt Building Corporation, Hunt Communities, Wells Fargo Bank of El Paso, a UTEP College of Business Administration Faculty Research Grant, and the James Foundation Scholarship Fund. Helpful comments and suggestions were provided by Tony Payán, Doyle Smith, Angel Molina, John Virgo, and an anonymous referee. Econometric research assistance was provided by Emmanuel Villalobos and Enedina Licerio.

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Authors and Affiliations

  1. Department of Economics & Finance, University of Texas at El Paso, El Paso, TX, 79968-0543, USA

    Karen P. Fierro & Thomas M. Fullerton Jr.

  2. Department of Economics, Universidad Autónoma de Ciudad Juárez, Ciudad Juárez, Mexico

    K. Erika Donjuan-Callejo

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  1. Karen P. Fierro
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  2. Thomas M. Fullerton Jr.
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  3. K. Erika Donjuan-Callejo
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Correspondence to Thomas M. Fullerton Jr..

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Fierro, K.P., Fullerton, T.M. & Donjuan-Callejo, K.E. Housing Attribute Preferences in a Northern Mexico Metropolitan Economy. Atl Econ J 37, 159–172 (2009). https://doi.org/10.1007/s11293-009-9174-x

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  • DOI: https://doi.org/10.1007/s11293-009-9174-x

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