The higher the price of gas, the lower the value of houses in the suburbs, finds a study by the Brookings Institution. Every 10 percent increase in the price of gasoline lowers average house prices by $7,800 in the outskirts of a city and raises house prices by $5,600 in the city center, report the Brookings researchers. Their findings are based on an analysis of 930,702 home sales in Clark County, Nevada, from 1976 through 2010.
With gas prices falling to a low not seen in years, homeowners in the suburbs may benefit, able to sell their houses for more because buyers will be less averse to a lengthy commute.
Source: The Brookings Institution, Do Gasoline Prices Affect Residential Property Values?
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