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The Impact of Relative Size on Home Values

Item No. taj-w13-size

Price: $19.00


Feature article originally published in The Appraisal Journal Winter 2013 issue.

10 pages, PDF Download

This article discusses a study on the impact on pricing of the relative size of houses. Relative size impact refers to the effect on home values of house size relative to the average size of properties in the same neighborhood. The authors expand on previous research by developing new measures of the effect of relative house size and the pricing effects of relative size. The research uses standard regression analysis and a database of 5,996 home sales in 412 subdivisions in the San Antonio area over a one-year period from April 2001 through March 2002.

The study shows that larger houses sell at discounts while smaller houses carry premiums relative to the average house size within the same neighborhood. Houses that were larger relative to the average-sized homes in the neighborhood sold at an 11 percent discount while the homes that were smaller relative to the average home sold at a 4.7 percent premium.


Paul K. Asabere, PhD
Forrest E. Huffman, PhD


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