Effects of High-speed Internet Access on Homes Without Mortgages Within the United States

Book excerpt: Internet access and the benefits it provides have played a role in the information processing, actionability, factors of production, and eventually the behavior of individuals. Understanding this basis from previous literature, this research evaluates the effects high-speed internet access has on housing costs for homes without mortgages in the United States. Using linear regression methodology this research creates 3 models. MODEL 1 assesses the effects of high-speed internet access on housing costs for homes without mortgages. MODEL 2 assesses the effects of high-speed internet access on the percent of income spent on housing costs for homes without mortgages. MODEL 3 assesses the effects of high-speed internet access on the change in housing costs over a three-year period for homes without mortgages. MODEL 1's significant and positive correlation shows that as high-speed internet access increases, their housing costs also increase. MODEL 2's significant and positive correlation shows that as high-speed internet access increases, housing costs relative to one's income also increase. MODEL 3's significant and negative correlation shows that as high-speed internet access increases, the expected change in housing costs over the next three years will decrease. The three results may indicate that consumers are willing to pay more in housing costs in order to receive access to high-speed internet. The benefit of high-speed internet access that consumers are willing to pay for could be the ability to decrease the expected change in housing costs over a three-year period.