Most people recognize that a condo with a waterfront view will sell for a premium, but what about a condo that has a pet?
Advocates of lifting pet restrictions in condominiums usually argue for the medical and psychological benefits of pet-owning.
Now there is research indicating that there are monetary benefits as well.
Zhenguo Lin from California State University, Marcus T. Allen from College of Charleston, and Charles C. Carter from University of Baltimore examined the economic impact of restrictions against keeping domestic pets in residential dwellings at a retirement community in South Florida.
Their results suggested that an unrestricted pet policy created a significant premium in condominium price, along with discounts for condominiums that did not allow pets or have pet restrictions. More specifically, they found that condominiums with unrestricted pet policies sold for 11.6% more than those barring pets, on average.
This finding would appear to be useful for policy makers, developers of new condominium projects, and condominium owner associations in their decisions to establish or alter laws and regulations regarding restrictions on pet owner residents.
However, the authors do point out that elected officials may be hesitant to mandate the allowance of pets in condos. Regulations that resulted in uniform pet policies would eliminate this amenity as a price determinant, possibly resulting in social welfare losses if some portion of condo owners would pay more for units in pet restricted condominium projects.
So who knows if we’ll ever see pet restrictions lifted, but at least we can always count on waterfront condos contributing towards social welfare.