Evaluating the Quality of the Residential Environment
TL;DR: In this paper, the extent of urban blight in a single metropolitan area is measured using a sample of individual dwelling units and a method of quantifying some previously neglected aspects of residential quality and demonstrates that they are highly valued by urban households.
Abstract: This paper attempts to measure systematically the extent of blight in a single metropolitan area. Using a sample of individual dwelling units, the paper first describes a method of quantifying some previously neglected aspects of residential quality and demonstrates that they are highly valued by urban households. Secondly, it illustrates the feasibility of generalizing these quality measurements of sample dwellings to all city blocks using widely available explanatory variables. The analysis finds strong inferential evidence of an important, but elusive, relationship among the level of public services provided to particular dwelling units (police protection and schools), measures of residential quality, and the market's valuation of these units. The models described in this paper relate to an important range of urban renewal questions. For example, they can be used to obtain lower bound estimates of the potential benefits of urban renewal programs.
Citations
More filters
TL;DR: In this paper, the authors estimate the implicit prices of specific aspects of the bundles of residential services consumed by urban households by regressing market price of owner-and renter-occupied dwelling units on measures of qualitative and quantitative dimensions of the housing bundle.
Abstract: Based on an extensive sample of individual dwelling units, this article estimates the market value, or the implicit prices, of specific aspects of the bundles of residential services consumed by urban households. Quantitative estimates were obtained by regressing market price of owner- and renter-occupied dwelling units on measures of the qualitative and quantitative dimensions of the housing bundle. The measures of residential quality associated with individual dwelling units were obtained by using factor analysis to aggregate some 39 indexes of the quality of narrowly defined aspects of the dwelling units, structures, parcels, and micro-neighborhoods. The analysis indicates that the quality of the bundle of residential services has about as much effect on the price of housing as such objective aspects as the number of rooms, number of bathrooms, and lot size. The analysis also confirms the influence of neighborhood schools on the value of residential properties and indicates that rental propert...
665 citations
Additional excerpts
...urban renewal programs [12]....
[...]
TL;DR: The authors assesses the impact of proximity to light rail transit stations on residential property values in Buffalo, New York, where light rail has been in service for 20 years, but population is sparse.
Abstract: This study assesses the impact of proximity to light rail transit stations on residential property values in Buffalo, New York, where light rail has been in service for 20 years, but population is ...
500 citations
TL;DR: In this article, an explicit geographic perspective for modeling the housing price determination process is introduced, where the traditional econometric models that utilize the hedonic price regression are accepted but are extended to incorporate spatial neighborhood dynamics.
Abstract: This paper introduces an explicit geographic perspective for modeling the housing price determination process. The traditional econometric models that utilize the hedonic price regression are accepted but are extended to incorporate spatial neighborhood dynamics. The expansion method is used as the general modeling framework. The question posed by this research is: Do housing attributes produce different pricing differentials depending on location? Consequently, the models that are generated are characterized by spatial variation with respect to the influence of housing attributes on housing prices. In addition to its conceptual concern, this paper also deals with spatial dependence, an issue that has not been addressed in the previous empirical investigations. The empirical segment of this research uses data for the Columbus, Ohio MSA. The results suggest that the models constructed using the expansion method more accurately mirror the workings of the residential real estate markets.
339 citations
TL;DR: In this paper, the dependence of property values on a schedule of "amenities" is examined in the case of a "small" and "open" city, and the results of the analysis are generalized to a "closed" city.
196 citations
Additional excerpts
...‘See, for example, Edel (1971), Freeman (1971), Kain and Quigley (1970) , Lind (1973),...
[...]
TL;DR: The winner of the Real Estate Valuation manuscript prize (sponsored by the Appraisal Institute) presented at the 1999 American Real Estate Society Annual Meeting as mentioned in this paper, was the winner of a study that analyzes the relationship between valuation and valuation.
Abstract: This article is the winner of the Real Estate Valuation manuscript prize (sponsored by the Appraisal Institute) presented at the 1999 American Real Estate Society Annual Meeting.This study analyzes...
133 citations