Town and gown: The negative externality of a university on housing prices

Abstract

This study of the City of Whitewater housing market analyzes the impact of the University of Wisconsin-Whitewater campus on single-family home values from 2000 through 2011. The study utilizes geospatial analysis to calculate the distance of each home from campus as the variable of interest. Analysis of the entire city finds a non-linear, negative marginal impact of distance from campus on home values that initially increases in magnitude as distance from campus increases and then gradually decreases. Further analysis indicates that the impact of distance from campus differs between eastern and southwestern regions of the City.