Las Cruces Housing Prices

Steven L Fullerton, University of Texas at El Paso

Abstract

This study analyzes the median price for existing single-family housing units in Las Cruces, New Mexico. Explanatory factors used in the analysis are real per capita income, the housing stock, real mortgage rates, real apartment rents, and the real price of homes across the United States with data ranging from 1970-2017. Two estimation strategies are used for parameter estimation of the reduced form price equation. Results obtained include various unforeseen outcomes that include unexpected coefficient signs and relatively large elasticities. The most surprising result is that the long-run real rent coefficient has a negative sign, implying that apartments and houses are complements rather than substitutes over the long-run in Las Cruces, New Mexico. Local income and national housing prices are positively correlated with single-family residence prices in the long-run.

Subject Area

Economics|Finance

Recommended Citation

Fullerton, Steven L, "Las Cruces Housing Prices" (2019). ETD Collection for University of Texas, El Paso. AAI27736000.
https://scholarworks.utep.edu/dissertations/AAI27736000

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