The accuracy of self-reported dwelling valuation

Aviad Tur-Sinai, Larisa Fleishman, Dmitri Romanov

Research output: Contribution to journalArticlepeer-review


Owners’ valuations of dwelling prices are central in the construction of price indices and households’ economic behavior. We analyze the variation of the self-reported valuation bias over the distribution of dwelling sale prices, using a dataset of observations from a Household Expenditure Survey merged with the national sample of housing sale transactions by census tract. We find that self-reported estimates of dwelling values are, on average, 20% higher than the mean market prices of houses in the corresponding census tracts. Estimates reported by people who occupy dwellings in the lowest eight deciles of the price distribution are upward-biased, whereas those who live in the most expensive dwellings more typically understate the value of their homes. The self-reported valuation bias is systematically associated with owner's traits and with dwelling and neighborhood characteristics. Misspecification might be another potential explanation for that bias. The frequency of dwelling sales in the respondent's tract was found to have an effect on the self-reported valuation bias.

Original languageEnglish
Article number101660
JournalJournal of Housing Economics
StatePublished - Jun 2020
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2019 Elsevier Inc.


  • Census tract
  • Hedonic price model
  • Sale price
  • Subjective asset valuation

ASJC Scopus subject areas

  • Economics and Econometrics


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