1# RECORD a2ea97ac51efa95bc0afe5e21b1890bf2fae22b72# TITLE: The Impact of Jacuzzi Bathtubs on House Prices3# YEAR: 2011.0 VENUE: nan DOI: 10.5539/jsd.v4n3p1994# AUTHORS: A. Otegbulu; Olusola Johnson5# PAGES: 11 CANDIDATE TABLE PAGES (1-based): []6# ABSTRACT: The study examines the impact of Jacuzzi bathtubs on house prices. Jacuzzi bathtubs have health related benefits. This study empirically tests a hedonic house pricing model using a sample of 138 houses in high income residential sub-market of Lekki phase one in Lagos metropolis. Forty-six duplexes have Jacuzzi bathtubs installed in their homes while Ninety-two do not. The study results show that that having Jacuzzi bathtubs increases home value by N2, 167,615. 1. Background of Study A house is a heterogeneous good. Its value depends on a number of characteristics such as size, age, and location. Rosen (1974) hedonic pricing model hypothesized that a housing market can be viewed as the interaction of implicit markets for these characteristics. As a result, regression analysis can be utilized to derive the implicit price of each housing attribute and the contribution of each attribute to the overall house price. The housing attributes used are generally classified into: structural attributes, such as age and floor area; location-related attributes, such as proximity to the CBD, floor level, and view; and neighbourhood attributes such as the provision of social facilities (Mok, Chan and Cho 1995). Home Jacuzzi bathtubs belong to the structural attributes of a house. It is a term that is used to refer to any bathtub with water jets. A Jacuzzi bathtub is one of the green features that could be installed into homes. It offers several advantages over traditional bathing facilities. A Jacuzzi is synonymous with class and status but besides the benefit of an increase in owner status in society, owners also benefit from the therapeutic value of a Jacuzzi. The benefits of Jacuzzis vary from person to person as there are many therapeutic values that a Jacuzzi has that can assist people with various aches and pains ranging from tension to rheumatoid arthritis. The power of warm water has been harnessed for centuries and dates back to the Ancient Greeks. Therefore it is well known that the comfort that owners experience in a Jacuzzi is rarely out matched and that there are few people who are not aware of the comfort of a Jacuzzi. Stress is a leading factor in illnesses across the world and decreasing stress can assist with immune system and longevity in the long run. Excess stress is damaging to health. It is therefore important to take time daily to relax and de-stress. The experience of the warm water of a Jacuzzi bathtubs circulating around the body is the ideal acti789===== PAGE 1 (score 14, numeric-paren 0, table-words 0, var-words 14) =====1011www.ccsenet.org/jsd Journal of Sustainable Development Vol. 4, No. 3; June 2011 12Published by Canadian Center of Science and Education 1319914The Impact of Jacuzzi Bathtubs on House Prices 15Austin Otegbulu, PhD & Olusola Johnson, MSc 16Department of Estate Management, University of Lagos, Nigeria 17E-mail: austinotegbulu@yahoo.com, estatessj1004@yahoo.co.uk 18 19Received: Mach 4, 2011 Accepted: April 19, 2011 doi:10.5539/jsd.v4n3p199 20 21Abstract 22The study examines the impact of Jacuzzi bathtubs on house prices. Jacuzzi bathtubs have health related benefits. 23This study empirically tests a hedonic house pricing model using a sample of 138 houses in high income 24residential sub-market of Lekki phase one in Lagos metropolis. Forty-six duplexes have Jacuzzi bathtubs 25installed in their homes while Ninety-two do not. The study results show that that having Jacuzzi bathtubs 26increases home value by N2, 167,615. 27Keywords: Jacuzzi bathtubs, House prices, Lagos metropolis 281. Background of Study 29A house is a heterogeneous good. Its value depends on a number of characteristics such as size, age, and location. 30Rosen (1974) hedonic pricing model hypothesized that a housing market can be viewed as the interaction of 31implicit markets for these characteristics. As a result, regression analysis can be utilized to derive the implicit 32price of each housing attribute and the contribution of each attribute to the overall house price. The housing 33attributes used are generally classified into: structural attributes, such as age and floor area; location-related 34attributes, such as proximity to the CBD, floor level, and view; and neighbourhood attributes such as the 35provision of social facilities (Mok, Chan and Cho 1995). 36Home Jacuzzi bathtubs belong to the structural attributes of a house. It is a term that is used to refer to any bathtub 37with water jets. A Jacuzzi bathtub is one of the green features that could be installed into homes. It offers several 38advantages over traditional bathing facilities. A Jacuzzi is synonymous with class and status but besides the benefit 39of an increase in owner status in society, owners also benefit from the therapeutic value of a Jacuzzi. The benefits 40of Jacuzzis vary from person to person as there are many therapeutic values that a Jacuzzi has that can assist people 41with various aches and pains ranging from tension to rheumatoid arthritis. The power of warm water has been 42harnessed for centuries and dates back to the Ancient Greeks. Therefore it is well known that the comfort that 43owners experience in a Jacuzzi is rarely out matched and that there are few people who are not aware of the 44comfort of a Jacuzzi. Stress is a leading factor in illnesses across the world and decreasing stress can assist with 45immune system and longevity in the long run. Excess stress is damaging to health. It is therefore important to take 46time daily to relax and de-stress. The experience of the warm water of a Jacuzzi bathtubs circulating around the 47body is the ideal activity for to relax aching body, rejuvenate the body or assist in pain relief. Hydrotherapy is often 48used for the treatment of diseases and with a private Jacuzzi bathtub one will be able to experience the benefit of 49hydrotherapy in his own home. 50The New England Journal of Medicine published articles on hot tubs and diabetes in a 1999 issue and two issues 51during 2000. The study was led and reported by Philip L. Hooper, M.D., of the McKee Medical Center in Loveland, 52Colorado. Their thesis was that exercise is effective for people with type 2 diabetes. They wondered if sitting in a 53hot tub with water up to their shoulders would simulate the benefits of exercise for their patients. Eight patients 54participated. They used the hot tub for half an hour a day, six days a week, for three weeks. Water temperature 55ranged from 100° F to 105.8° F. Diet, exercise routines, and medication were stable for eight weeks before and 56during the test period, although one participant had to reduce his insulin dose by 18 percent to prevent 57hypoglycemic reactions. After three weeks the mean weight of the patients had decreased by 3.7 pounds. Mean 58fasting plasma glucose level decreased from 182 mg/dl to 159 mg/dl. Their mean A1c levels dropped from 11.3 to 5910.3. As the study progressed, the participants reported improved sleep and an increased general sense of 60well-being. Hooper theorizes that the benefits could result from increased blood flow to skeletal muscles. However, 61Jacuzzi bathtubs are also potential health risk for some patients especially those suffering from kidney problems, 62high blood pressure and pregnant women (Charite University Hospital in Berlin, 2003). In all, Jacuzzi bathtubs are 63highly beneficial. Apart from the benefits to the body, the installation of a Jacuzzi bathtub could add a premium to 64house price. 65