RICS FiBRE: Residents’ Satisfaction with Local Public Goods and Services: The Effects of Income and Privatization in Southern California


06/03/2010 14:53

Using the five counties of the Los Angeles metropolitan area as a case study, this research by Peter Gordon and Huanghai Li of the University of Southern California explored whether there is a relationship between homeowners’ satisfaction with the provision of municipal services and different forms of local governance, looking in particular at whether income, privatization and place matter.
  • The results suggested that above-median income homeowners can afford to choose municipalities that satisfy their desired level of municipal services. By contrast, below median income homeowners are more likely to prefer living in a private homeowners’ association (HOA).
  • Above-median income homeowners did not take HOA fees into account when purchasing a home. This may indicate that they felt they were paying too much for the alternative of local municipal services, perhaps explaining their feeling of relative dissatisfaction. By contrast, below-median income owners discounted the HOA fees into the home purchase price, perhaps indicating that this package was a serious consideration in their choices.
Click here to read this latest report from the Findings in Built and Rural Environments (FiBRE) Series.