We focus on the housing market and examine why nonlocal home buyers pay 12% more for houses than local home buyers. We established a database on the residential housing market for Lafayette and West Lafayette, Indiana, that includes house transactions from 2000 to 2020. The dataset contains highly detailed information on individual buyers and house characteristics. We explain the price differential controlling for arguments such as imperfect information on prices, wealth effects, heterogeneous buyer preferences, and differential search and travel costs across buyers, among others. We estimate a housing demand model that returns heterogeneous marginal willingness to pay parameters for housing attributes. Our results show that nonlocal home buyers are willing to pay more for specific housing attributes, especially for house size, school quality, and house age. We also find that arguments such as gratification, reward, and imperfect price information explain the price differential to a large extent. Search and travel cost arguments have an adverse effect on nonlocal buyers’ house spending.

我们专注于房地产市场，并研究为什么非本地购房者要比本地购房者支付多12％的住房费用。我们建立了印第安纳州拉斐特和西拉斐特住宅市场的数据库，其中包含2000年至2020年的房屋交易。该数据集包含有关个人购买者和房屋特征的高度详细的信息。我们解释了价格差异控制的论点，例如关于价格的不完全信息，财富效应，不同的购买者偏好以及购买者之间的差异搜索和差旅成本等。我们估计了一个住房需求模型，该模型返回异质边际意愿来支付住房属性的参数。我们的结果表明，非本地购房者愿意为特定的住房属性（尤其是房屋面积，学校质量，和入户年龄。我们还发现，诸如满足，奖励和不完善的价格信息之类的论点在很大程度上解释了价格差异。搜索和差旅费用的论点对非本地买家的房屋支出有不利影响。