Local Real Estate Market Efficiency in Response to Major Market Announcements: Corpus Christi, Texas
Abstract
This study analyzes intra-jurisdictional differences in changes in property values through time as a result of various Tax Incremental Financing (TIF) project announcements that directly affect one highly localized, Gulf of Mexico barrier island portion of the city of Corpus Christi, Texas. It measures the changes in property values in the TIF district and in two other well-defined areas of the city with similar properties. Results of a general linear model analysis indicate that prices per square foot for the TIF district, after controlling for the covariates and categorical variables, are higher relative to the other two zones shortly following major announcements concerning the TIF district. This paper adds to the literature on the effects of TIF financing by (1) measuring intra-jurisdictional differences that result from a TIF project; and (2) by using actual sales data. Previous studies have measured inter-jurisdictional differences, which can be confounded by other changes occurring in different jurisdictions, and have used assessed valuation, which can be quite different from market value in ways that are not necessarily random.
Recommended Citation
Spencer, Marilyn K.; Guardiola, José; and Elsalloukh, Hassan
(2008)
"Local Real Estate Market Efficiency in Response to Major Market Announcements: Corpus Christi, Texas,"
The Coastal Business Journal: Vol. 7:
No.
1, Article 1.
Available at:
https://digitalcommons.coastal.edu/cbj/vol7/iss1/1
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