Measuring the Effects of “Adults Only” Age Restrictions on Condominium Prices

Abstract

Current U.S. housing policy prohibits discrimination in the sale or rental of housing or in the provision of brokerage services on the basis of race, color, religion, sex, national origin, disability, or familial status. Since 1988, an exception to this policy has permitted owners and operators of buildings and facilities that were intended to be operated as housing for older persons to discriminate against younger residents, including families with children and pregnant women, without violating the nation’s fair housing laws. This exception was clarified by the Housing for Older Persons Act of 1995 which precisely defines the type of facility that qualifies as housing for older persons. The purpose of this study is to consider whether such restrictions have a measurable effect on housing prices. Based upon data from condominium transactions in southeast Florida, the results presented here suggest that age restrictions have a positive price effect, holding other determinants of condominium prices constant.