The Impact of Jacuzzi Bathtubs on House Prices

Austin Otegbulu, Olusola Johnson
2011 Journal of Sustainable Development  
The study examines the impact of Jacuzzi bathtubs on house prices. Jacuzzi bathtubs have health related benefits. This study empirically tests a hedonic house pricing model using a sample of 138 houses in high income residential sub-market of Lekki phase one in Lagos metropolis. Forty-six duplexes have Jacuzzi bathtubs installed in their homes while Ninety-two do not. The study results show that that having Jacuzzi bathtubs increases home value by N2, 167,615. 204 This study empirically tests a
more » ... empirically tests a hedonic house pricing model using a sample of 138 houses in high income residential sub-market in Lagos metropolis where some houses have Jacuzzi bathtubs while others do not. The results clearly demonstrate that houses with Jacuzzi have statistically significant impact on house prices even after adjusting for other significant house price determinants. The premium paid for houses with Jacuzzi bathtubs translates into N2,167,615. That is when valuing a house that has a Jacuzzi bathtubs, valuers should add N2,167,615 to their appraised valuation. Of course, not all Jacuzzis in the study area have the same. As such, the results of cannot be used as a cook-book to exactly determine the value of Jacuzzi bathtubs when valuing a house, there is therefore the need for upward or downward adjustment based on the size of the Jacuzzi bathtubs. This study provides a starting point from which valuers can deviate when assessing premium for Jacuzzi bathtubs in Lagos, Nigeria.
doi:10.5539/jsd.v4n3p199 fatcat:ep4eih3j3nes3p7nyvnyjjwc4u