On ski resort, ski lifts and various forms of infrastructure being built effect the valuation of the homes around the resort. These new structures being built on the ski resort are classified as externalities, as the homes themselves do not benefit directly from their construction, but do benefit indirectly. The following paper analyzes two specific externalities and how they relate to housing valuation: ski lifts and average annual snowfall. These two factors are analyzed with how they correlate to housing valuation using a hedonic pricing analysis. Specifically, this hedonic analysis will determine which variable correlates most closely with housing valuation, and therefore which variable investors should look more closely at when determining which real estate market to look at. The results of this study will help investors better realize what markets to invest into, and what factors impact house prices.
