The effect of proximity to a registered sex
offender's residence on single-family house selling
price.
by Larsen, James E.^Lowrey, Kenneth J.^Coleman, Joseph W.
Estimated Estimated
Variable Coefficient P > t Coefficient P > t
Intercept 31,736 < .0001 29,578 < .0001
PROX -7,188 .0126 -4,303 .0115
SQFT 45 < .0001 46 < .0001
AGE -385 < .0001 -365 < .0001
LOT 7,622 < .0001 7,404 < .0001
FIRE 9,573 <. 0001 9,542 < .0001
OWN 8,155 < .0001 7,896 < .0001
WINTER -3,438 .0132 -4,020 .0084
BATH3 34,707 < .0001 33,016 < .0001
FULL 5,622 < .0001 6,228 < .0001
LOC5 11,556 < .0001 11,066 < .0001
LOC7 -20,700 < .0001 -19,756 < .0001
LOC11 -22,650 < .0001 -23,391 < .0001
LOC14 -8,547 .0283 -7,955 .0506
LOC17 12,610 .0259 12,065 .0416
LOC18 24,834 < .0001 23,421 < .0001
LOC19 -26,103 < .0001 -26,753 < .0001
LOC20 -16,260 < .0001 -18,168 < .0001
LOC21 -16,099 < .0001 -16,772 < .0001
LOC22 -14,594 < .0001 -14,239 .0002
LOC25 -31,452 < .0001 -32,470 < .0001
LOC26 -22,024 < .0001 -20,955 < .0001
LOC28 14,084 .0029 12,716 .0089
LOC29 -29,222 < .0001 -27,283 < .0001
LOC30 -29,740 < .0001 -25,596 .0002
LOC31 -24,554 < .0001 -24,347 < .0001
LOC33 -25,978 .0004 -26,864 .0004
LOC34 -26,114 < .0001 -26,592 < .0001
LOC37 -25,539 < .0001 -26,321 < .0001
LOC39 21,148 < .0001 19,742 < .0001
LOC41 77,149 < .0001 81,136 < .0001
LOC42 14,547 .0027 13,375 .0073
LOC45 15,693 < .0001 14,138 .0005
LOC47 9,274 .0013 8,186 .0071
LOC48 30,216 < .0001 28,510 < .0001
LOC49 22,942 .0171 21,150 .0323
Adjusted [R.sup.2] Adjusted [R.sup.2]
=.7267 =.7320
Table 3 Selling Price Effect
Proximity to Offender Subject to
Limited Disclosure
Dollar Percentage
PROX (in miles) n Price Effect P > t Price Effect
<= 0.1 31 -11,864 .0301 17.4
> 0.1-0.2 92 -7,475 .0207 10.2
> 0.2-0.3 124 -7,188 .0126 9.3
> 0.3-0.4 135 -5,104 .0690 6.4
> 0.4-0.5 153 -703 .7970 0.8
Proximity to Offender Subject to
Passive Notification
Dollar Percentage
PROX (in miles) n Price Effect P > t Price Effect
<= 0.1 238 -4,208 .0492 7.5
> 0.1-0.2 463 -4,303 .0115 5.0
> 0.2-0.3 486 -3,465 .0574 3.8
> 0.3-0.4 369 -3,843 .0717 3.9
> 0.4-0.5 271 -1,932 .4765 1.8
The authors thank the Ohio Link and the Paul Lawrence Dunbar
Library at Wright State University for their generous support by
providing the ESRI software through a site licensing arrangement. We
also thank the Ohio GIS-Net for providing GIS advice, the Department of
Urban Affairs and Geography at Wright State University for their
assistance in this study, and the reviewers who commented on this paper.
(1.) In general, previous studies find that if an externality is
perceived as favorable, it has a positive effect on the value of the
subject property; if the externality is perceived as unfavorable, it has
a negative effect. Negative price effects have been demonstrated for
houses in close proximity to other negative externalities including a
variety of environmental hazards. For a review of the environmental
hazard literature, see Melissa A. Boyle and Katherine A. Kiel, "A
Survey of House Price Hedonic Studies of the Impact of Environmental
Externalities," Journal of Real Estate Literature 9, no. 2 (2001):
117-144.
(2.) John Q. La Fond, "The Costs of Enacting a Sexual Predator
Law, Psychology, Public Policy and Law 4 (1998): 468-504.
(3.) P.L. 104-145, [section]1, 110 Stat. 1345. One of the stimuli
for this law was the case of Megan Kanka, who in 1994 was raped and
killed by a repeat sex offender who, unknown to Megan's parents,
lived across the street from her home.
(4.) Ohio Revised Code [section] 2950.01; offenses included in this
statute are rape, sexual battery, gross sexual imposition, kidnapping,
abduction, unlawful restraint, criminal child enticement, corruption of
a minor, compelling prostitution, endangering children (under age 18),
pandering obscenity, pandering sexually oriented material involving a
minor, and illegal use of a minor in nudity-oriented material. Sexual
predators must report to the sheriff's office every 90 days for
life.
(5.) Habitual sex offenders must report to the sheriff's
office once annually for 20 years.
(6.) Sexually oriented offenders must report to the sheriff's
office once annually for 10 years.
(7.) Unlike in some other states (e.g., Alaska), house sellers in
Ohio are not required to report the presence of sex offenders on the
mandatory seller disclosure form.
(8.) See for example, Dennis M. Doren, "Recidivism Base Rates,
Predictions of Sex Offender Recidivism, and the 'Sexual
Predator' Commitment Laws," Behavioral Sciences & the Law
16 (1998): 97-114; D. M. Greenberg, "Sexual Recidivism in Sex
Offenders," Canadian Journal of Psychiatry 43 (1998): 459-465;
Michael P. Hagan and Karyn L. Gust-Brey, "A Ten-Year Longitudinal
Study of Adolescent Rapists Upon Return to the Community,"
International Journal of Offender Therapy and Comparative Criminology
43, no. 4 (1999): 448-458; R. K. Hanson, R. A. Steffy, and R. Gauthier,
"Long-Term Recidivism of Child Molesters," Journal of
Consulting and Clinical Psychology 61 (1993): 646-652; R. A. Prentky, et
al., "Recidivism Rates Among Child Molesters and Rapists: A
Methodological Analysis," Law and Human Behavior 21 (1997):
635-659; V. L. Quinsey, M. E. Rice, and G. T. Harris, "Actuarial
Prediction of Sexual Recidivism," Journal of Interpersonal Violence
10 (1995): 85-105; and M. C. Seto and H. E. Barbaree, "Psychopathy,
Treatment Behavior, and Sex Offender Recidivism," Journal of
Interpersonal Violence 14 (1999): 1235-1248.
(9.) U.S. Department of Justice, Office of Justice Programs, Bureau
of Justice Statistics.
(10.) These figures were obtained by personal communication between
the authors and employees of the Bureau of Justice Statistics, United
States Department of Justice.
(11.) The local real estate board reports days on the market only
for the most recent listing contract; time for expired listings is not
included in the figure they report.
(12.) Not all of the offenders lived in Montgomery County for the
entire year. Twenty-five of the 26 offenders where limited disclosure
applied lived in the county at year-end. Ten of this group did not live
in the county at the beginning of the year. All 223 offenders where
passive notification applied lived in the county at the end of the year,
but 61 of this group did not reside in the county (or had not yet become
registered sex offenders) at the beginning of the year.
(13.) The Dayton Area Board of REALTORS[R] reported 5,614
single-family home sales during the study period. Ambiguous geocoding
resulted in 115 observations being discarded from the sample. The
remainder were eliminated because of incomplete data.
(14.) Tele Atlas can be found at www.geocode.com. Tele Atlas
provides the "Block Face Match" (BFM), which represents the
best match rather than parcel level accuracy. In essence, rather than
specifying the latitude and longitude at a particular point on each
property (e.g., front center) the geocode derived from a BFM is actually
a geometric estimation. Tele Atlas stores the beginning and ending
address range for a block, and knows the number parity (odd or even).
For example, the geocode assigned to 150 Eagle Street, would be roughly
halfway between the presumed beginning and ending address range of 100
and 198. The interactive web site for Tele Atlas was used in this study
for the geocoding because it provides a high level of location
confidence. It can accurately position every point in the data set to
six decimal points of a degree, and in the Montgomery County, Ohio area,
this accuracy translates to less than 20 inches. It is also fast,
repeatable, commonly used in geographic information systems (GIS) work,
and accessible to anyone conducting a study. There is a charge for the
service, but the cost per address is low.
COPYRIGHT 2003 The Appraisal
Institute Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2003, Gale Group. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.