A housing price model with endogenous externality location: A study of mobile home parks

This research explores the impact of mobile home parks on the value of sing le-family homes. This is the first study that empirically analyzes the effe ct of mobile home parks on property values. The empirical methodology used attempts to address the potential identification problem that exists within this study; it is possible that mobile home parks are located in areas of relatively lower land values or next to other land uses that impact propert y values. To address this identification problem, mobile home park location s are treated as endogenous within the model and the mobile home parks are identified as being located in residential or non-residential areas. The re sults suggest a negative effect on the selling price of single-family dwell ings in close proximity to mobile home parks located in residential areas.