Kindergarten Proximity and the Housing Market Price in Italy

Abstract

This paper investigates the impact of kindergarten proximity on housing market prices in the eleven major Italian Municipalities over the period 2004–2017. For this purpose, we employ a hedonic property price model. We also differentiate the impact of kindergarten proximity on houses’ market price between state and non-state premises. The findings highlight that (i) the level of housing price depends on kindergarten proximity; (ii) some quality school characteristics played a crucial role and (iii) the distinction between public and non-state kindergartens shows that the vicinity of the latter generates a more significant capitalization effect. Finally, the empirical evidence could be useful to several actors involved in urban planning when developing plans for the construction of new kindergartens in order to create a more homogeneous city.