Journal ArticleDOI
Land, Structure and Depreciation
Marc Francke,Alex Van de Minne +1 more
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TLDR
In this paper, the authors introduce a hedonic price model that enables disentangling the value of a property into its value of land and the property's value of structure, and show that maintenance has a substantial impact on the rate of physical deterioration.Abstract:
We introduce a hedonic price model that enables us to disentangle the value of a property into the value of land and the value of structure. For given reconstruction costs, we are able to estimate the impact of physical deterioration, functional obsolescence and vintage effects on the structure and the impact of time on sale (and external obsolescence) on the land value simultaneously. Our findings show that maintenance has a substantial impact on the rate of physical deterioration. After 50 years of not or barely maintaining a home, a typical structure has lost around 43% of its value. In contrast, maintaining a home very well results in virtually no physical deterioration in the long run.read more
Citations
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Journal ArticleDOI
A hedonic urban land price index
TL;DR: In this paper, the authors proposed an urban land price index based on land transaction prices for Luxembourg between 2010 and 2014 recorded in notarial deeds and cadastral data, together with geo-spatial characteristics.
Journal ArticleDOI
Characteristics of Depreciation in Commercial and Multifamily Property: An Investment Perspective
Sheharyar Bokhari,David Geltner +1 more
TL;DR: In this paper, the authors report empirical evidence on the nature and magnitude of real depreciation in commercial and multifamily investment properties in the United States, based on actual transaction prices rather than appraisal estimates of property or building structure values.
Journal ArticleDOI
The Economics of Style : Measuring the Price Effect of Neo-Traditional Architecture in Housing
Edwin Buitelaar,Frans Schilder +1 more
TL;DR: In this article, a cross-sectional hedonic price analysis including building styles of recently developed homes in the Netherlands was performed and the authors found a significant price premium for housing with neo-traditional architecture.
Journal ArticleDOI
The economic depreciation of real estate: Cross-sectional variations and their return implications
Jiro Yoshida,Jiro Yoshida +1 more
TL;DR: In this article, the authors analyzed how real estate depreciates in economic value as it ages and proposed new methods to correct for survivorship biases, which serve as essential inputs for the analysis of real estate investment, consumer choice of housing, sustainability, and macroeconomy.
Journal ArticleDOI
Responsive and Adaptive Design for Survey Optimization
TL;DR: This paper presents the four pillars of responsive and adaptive design (RAD), a scientific framework driven by cost-quality tradeoff analysis and optimization that enables the most efficient production of high-quality data.
References
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ReportDOI
Prices of Single Family Homes Since 1970: New Indexes for Four Cities
TL;DR: In this paper, the authors used data on nearly a million homes sold in four metropolitan areas (Atlanta, Chicago, Dallas and San Francisco) to construct quarterly indexes of existing home prices between 1970 and 1986.
Posted Content
Urban Land Prices Under Uncertainty
TL;DR: In this article, the authors present a two-date, two states of nature model for determining the value of the vacant land for the case where the future price of building units, and hence the size of the building that is to be constructed, is uncertain.
Journal ArticleDOI
Urban Decline and Durable Housing
Edward L. Glaeser,Joseph Gyourko +1 more
TL;DR: This paper presented a model of urban decline with durable housing and verifies these implications of the model: (1) city growth rates are skewed so that cities grow more quickly than they decline; (2) urban decline is highly persistent; (3) positive shocks increase population more than they increase housing prices; (4) negative shocks decrease housing prices, and (5) if housing prices are below construction costs, then the city declines; and (6) the combination of cheap housing and weak labor demand attracts individuals with low levels of human capital to declining cities.
Report SeriesDOI
Housing Markets and Structural Policies in OECD Countries
TL;DR: In this article, the authors compared a number of housing policies such as housing taxation, land use and rental regulations and social housing policies for OECD countries relying on new data, and investigated whether these housing-related policies achieve their objectives in an efficient and equitable way and whether there are any side effects on other aspects of housing markets or on the wider economy.
Journal ArticleDOI
The price of residential land in large US cities
TL;DR: In this paper, the authors build a database of home values, the cost of housing structures, and residential land values for 46 large US metropolitan areas from 1984 to 2004, finding that residential land value has appreciated over a much wider range of cities than is commonly believed, and almost all large US cities have seen significant increases in real residential land prices.