Is It Really Bridging the Gap? Fiber Internet's Impact on Housing Values and Homebuyer Demographics

Fiber internet expansion represents a path to improved economic vitality for Americans, but it is unclear who benefits from it and by how much. We examine the effects of subsidized fiber internet expansion on home prices and homebuyer demographics using data from Wisconsin and an IV approach to correct for fiber network endogeneity. We find fiber internet increases urban and rural housing values by 1.83% ($3,462) and decreases the likelihood a homebuyer is white by 2.88%, but in urban areas only. Fiber internet therefore does not appear to drive minority homebuyers away but may contribute to the urban-rural racial divide.