Ski Resort Real Estate: Does Supply Prevent Appreciation?
This paper examines the behavior of ski resort property in a major New England market over the last 25 years. A property price series is constructed for the Loon Mountain resort, which is believed to be quite typical of New England Ski areas. This series reveals that nominal prices are only slightly higher today than they were in 1980, and consequently real prices have eroded by close to 40%. The price series also exhibits considerable variation over time. The causes of these fluctuations are investigated with a time series VAR model.