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The American Dream Home

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Part of what’s traditionally known as the American Dream revolves around the idea of one’s ultimate “dream home”: from a white picket fence to an expanse of green grass for children and pets to play in and everything in between. However, a home this day in age can be seen as an indicator of success, independence, status, uniqueness in design, etc. Many factors influence the price of a home, specifically in the highly sought-after state of California. Having an interest in Home Renovation and Interior Design, I can highlight direct influencers of the value of a home in regards to those fields. Anything from a home lacking a master suite, to having low curb appeal can decrease the value of a home considerably, however, I was looking to analyze …show more content…
If the nominal household income increases, the median sales price of homes will increase. A neighborhood with a healthy economy has a steady, balanced flow of income and expenses. A higher household income average within a defined geographic location means families can comfortably afford to live in higher valued-homes, causing sales prices to increase.
4. If the effective funds rate increases, the median sales price will decrease. A high effective funds rate, also known as the interest rate would have a direct effect on a home’s mortgage. Consumers will be less inclined to buy a home knowing they will be responsible for an expensive mortgage payment. This will lead them to look elsewhere for residence forcing realtors to lower the sales price of homes to better appeal to consumers.
5.

EMPIRICAL RESULTS and FORMULATION OF THE MODEL
SP = β0 + β1 BR + β2 UR + β3 HI + β4 IR + u

SP = Sales Price | BR = Burglary Rate | UR = Unemployment Rate | HI = Nominal Household Income | IR = Interest Rate

Figure 1 below indicates a summary of the data points utilized in the regression analysis.

Figures 7 denotes the 2nd regression plots for each of the independent …show more content…
A. (2003). Is The Cost Of Living Less In Rural Areas? International Regional Science Review, 26(1), 86-116. doi:10.1177/0160017602238987

Mantell, R. (2018, December 30). Home prices off record 18% in past year, Case-Shiller says. Retrieved April 20, 2016, from http://www.marketwatch.com/story/home-prices-off-record-18-in-past-year-case-shiller-says

Maximino, M. (2014, March 12). The impact of crime on property values: Research roundup - Journalist's Resource. Retrieved April 20, 2016, from http://journalistsresource.org/studies/economics/real-estate/the-impact-of-crime-on-property-values-research-roundup

Palmer, K. (2012, September 18). Why You Pay Extra to Live in the City. Retrieved April 22, 2016, from

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