Table 7

OLS Estimates of the Effect of Housing Price Changes on College Resources

Dependent VariableIndependent Variable: Home Price Change ($10,000)
Full SampleLow IncomeMiddle IncomeHigh Income
25th percentile math SAT0.796*
(0.417)		1.299**
(0.577)		1.297**
(0.588)		0.549
(0.464)
75th percentile math SAT0.573*
(0.311)		0.902*
(0.542)		0.814*
(0.503)		0.426
(0.467)
Faculty-student ratio0.0003**
(0.0001)		0.0004**
(0.0002)		0.0002
(0.0002)		0.0002
(0.0002)
Expenditures per student289.915**
(217.118)		427.974**
(181.085)		173.842
(128.781)		273.834
(149.890)
Instructional expenditures per student63.597**
(22.875)		118.608**
(40.821)		35.170
(28.171)		55.832
(39.610)
Graduation rate0.0014*
(0.0008)		0.0016**
(0.0007)		0.0022*
(0.0012)		0.0011
(0.0011)
Tuition23.932
(43.622)		25.853
(56.573)		−4.023
(50.441)		27.664
(60.811)

  • Notes: All estimates include MSA and age in 1997 fixed effects as well as controls for AFQT score, parental income, mother’s and father’s education, gender, race, MSA-level unemployment and income per capita, state-level public and private institutions per college age population, per-student state need-based aid, the ratio of BA to high school wages, and the number of each type of college in each MSA. All estimates also are weighted by NLSY97 sampling weights and include homeowners only. Each cell in the first column comes from a separate regression, while each row in the subsequent columns represents a separate regression. Housing price changes are real housing price changes over the four years prior to students turning 18 predicted by the conventional mortgage housing price index. Low-income families are those with total income under $75,000, medium income families are those with total income between $75,000 and $125,000, and high-income families are those with total income more than $125,000. Standard errors clustered at the MSA-level are in parentheses:

  • ↵** indicates significance at the 5 percent level and

  • ↵* indicates significance at the 10 percent level.