The Journal of Real Estate Finance and Economics

, Volume 46, Issue 1, pp 115–130 | Cite as

Another Look at Effects of “Adults-Only” Age Restrictions on Housing Prices

  • Charles C. Carter
  • Zhenguo Lin
  • Marcus T. Allen
  • William J. Haloupek


This study reexamines the price effects of age restrictions on housing prices. Our data cover a period when the housing market is taking a steep downturn. We argue that, when housing prices are falling, seniors are more likely to avoid investing in housing for at least two reasons. First, seniors are relatively more sensitive to their immediate equity loss than younger homeowners, mainly due to the limited remaining lifetime over which they can afford to wait; second, age-restriction acts as a luxury good, with seniors not willing to pay for reduction in neighborhood uncertainty, eliminating buyer demand for this segment of the population. If this “larger demand loss” outweighs the positive externality of the reduction in neighborhood uncertainty during the market downturn, we would observe that age-restrictions reduce property values. Using data from Broward County, Florida for the years of 2005–2007, we find a significant discount in residential condominium prices due to age-restrictions. In particular, we find that imposing age-restriction on properties decreases housing prices by 17.9% during the period May 2005 to April 2006, while the discount is worse, 22.7%, during the later period May 2006 to May 2007.


Age restriction Housing prices Bear housing market 


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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  • Charles C. Carter
    • 1
  • Zhenguo Lin
    • 2
  • Marcus T. Allen
    • 3
  • William J. Haloupek
    • 4
  1. 1.Haint Blue Realty, LLCBoca RatonUSA
  2. 2.Department of Finance, Mihaylo College of Business and EconomicsCalifornia State University FullertonFullertonUSA
  3. 3.Carter Real Estate CenterCollege of CharlestonCharlestonUSA
  4. 4.Department of Mathematics and StatisticsThe College of New JerseyEwingUSA

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