Empirical analysis of the impact of a landlord-tenant ordinance on property values2

The purpose of this article is to analyze the impact of a landlord-tenant ordinance (LTO) on property values, using time series data for the City of Evanston, Illinois, where the ordinance has been enacted since 1975. The empirical data analysis, which includes a trend analysis of hedonic price indices for both rental and owner-occupied property, has shown that an LTO is not likely to significantly affect housing values. Those remedies provided in the LTO are not likely to be radical departures from the current practices such as housing/building code, and can therefore not be expected to affect housing values substantially.     

城市公共服务的价值估计、受益者分析和融资模式探讨

城市生活质量决定城市价值.城市政府所提供的各类公共服务,直接影响着居民在城市中生活的舒适和便利程度,关系到城市长期发展的动力.围绕此主旨,论文探讨了3个相关的问题.第一,如何估计城市公共服务这些非市场的价值;第二,这些城市公共服务的成本承担和利益享受是否匹配;第三,怎样的公共口融资模式能够使上述关系更为匹配.基于显示性偏好法中的特征价格模型,利用北京市住宅市场和土地市场的徽观和个体交易数据,实证结果表明,居民愿意为居住在地铁站、公交车站和公署周边一定范围(0.8公里)内分别支付住宅价格的17.1%、12.4%和6.4%,但是,这种价值并没有被资本化到土地价格中.这表明,居民对城市公共服务偏好的住处并没有被房地产开发企业以地价的形式传递给政府,开发企业成为实际的受益者.以房地产价值作为税基的物业税的征收使信息可以从居民直接传递至城市政府,将使城市公共服务的融资模式更为合理.     

The elasticity of substitution for land: The effects of measurement errors

The explanatory variable used in most previous studies of land-nonland substitution, assessed or appraised land value, is subject to considerable measurement error. There is evidence that this biases the substitution elasticity from a true value of unity to a measured value in the 0.5 to 0.8 range. An hedonic method of measuring land value is proposed and applied to the Chicago residential sales data developed by Berry and Bednarz. Substitution elasticities are estimated within a CES framework from the two measures of land value; after correction for a vintage effect, appraised land value indicates that the elasticity is 0.57 whereas the hedonic measure of land values supports a unitary substitution elasticity. Therefore, the errors-in-variables hypothesis is confirmed and the use of a Cobb- Douglas production function is suggested.     

Hedonic estimation of housing demand elasticity with a markup over marginal costs

We show that recent developments in hedonic pricing theory allow modeling of the equilibrium pricing function as the marginal cost of an additional housing unit plus a markup that varies inversely with the elasticity of demand. Useful information about demand elasticity at a given point on the envelope function can be recovered from the hedonic regression and limited information on marginal costs. In particular, the elasticity of the envelope with respect to any characteristic such as interior area provides information on the elasticity of demand. Relative price elasticities (i.e., elasticities that vary from a base value in a known way with interior area, unit type or neighborhood characteristics) can be computed from the elasticity of the hedonic envelope. Like Yinger (2010), our method is based on a single hedonic equation.We test our method using sales of new high rise condominiums in two districts within Shenzhen, China: Futian and Longgang. The results strongly confirm the main hypothesis of this paper: price elasticity with respect to size is increasing for more complex types of units. Together with estimates of marginal costs of production, these results imply that relative demand elasticity is declining for larger, more complex units.     

A note on the value of crime control: Evidence from the property market

This note provides evidence on the amount people are willing to pay for crime control. The theory of hedonic price indexes is used to derive estimates from property values. The results are consistent with both theory and intuition.     

城市住房价格指数编制方法的拓展设计及实证检验

科学监测城市房价走势,在当前环境下尤为重要。为拓展国际通行方法编制国内单一城市房价指数的适用性,引入样本匹配重复交易法构建房价指数,以提高样本容量与可比性。基于上海数据的实证结果表明,相较于传统重复交易法和特征价格法,样本匹配重复交易法能更准确地反映住房价格变动,结果异常波动性更小,噪声影响程度更低,在克服样本代表性误差和变量缺失误差方面效果更显著,对编制国内城市房价指数具有较好应用价值。     

Hedonic price and depreciation indexes for residential housing: A comment

A regression technique for developing residential real estate price indexes using repeat sales on properties has not allowed the separation of depreciation from true price changes. In a recent article Chinloy [2] has proposed a method for achieving this separation. This note shows that his theoretical derivation is incorrect. A corrected model is then used to show the stringent assumptions that are necessary to interpret his empirical results as measuring embodied technological change. The true price effects and the depreciation effects still cannot be separated in such a model.     

Residential Hedonic Models: A Rational Expectations Approach to Age Effects

This paper develops a rational expectations framework for interpreting the coefficient on age in a standard hedonic model. The model demonstrates that there are two components to the age coefficient: a pure cross-sectional depreciation component and a demand-side component that changes over time. We also show that a constant quality price index with age constant can be estimated by using any repeat sales database that contains the year of construction (or property age). When Fairfax County data are fitted to the model, the time series of age coefficients is non-stationary: they change from negative in the early 1980s to positive in the late 1980s; we infer that the demand-side component dominated in the latter period.     

Neighborhood effects of concentrated mortgage foreclosures

As the national mortgage crisis has worsened, an increasing number of communities are facing declining housing prices and high rates of foreclosure. Central to the call for government intervention in this crisis is the claim that foreclosures not only hurt those who are losing their homes to foreclosure, but also harm neighbors by reducing the value of nearby properties and in turn, reducing local governments’ tax bases. The extent to which foreclosures do in fact drive down neighboring property values has become a crucial question for policy-makers. In this paper, we use a unique dataset on property sales and foreclosure filings in New York City from 2000 to 2005 to identify the effects of foreclosure starts on housing prices in the surrounding neighborhood. Regression results suggest that above some threshold, proximity to properties in foreclosure is associated with lower sales prices. The magnitude of the price discount increases with the number of properties in foreclosure, but not in a linear relationship.     

The estimation of residential property values around transit station sites in Washington,D.C.

The author examines in this study the relationship between public investment in METRO and property values in several neighborhoods in Washington, D.C., in order to determine if public investment in heavy rail transit systems increases residential property values. In order to examine this relationship, a hedonic price equation which included a dummy independent variable was estimated. Analysis of the data revealed a significant direct relationship between the opening of METRO and residential property values. Therefore, it can be concluded that public investment in METRO caused property values to increase around station site areas.     

The Impact of Manufactured Housing on Adjacent Residential Property Values: A GIS Approach Based on Three North Carolina Counties

This empirical study examines the impact of manufactured housing (MH) on the values of adjacent site-built residential properties using Geographical Information Systems (GIS) and large data samples for three counties in North Carolina, USA, for the period of 1994-2000. Both property appreciation rates (AR) and property values (PV) are examined with respect to proximity to MH. While ARs are based on a simple measure of value appreciation, PVs are estimated in a linear regression based hedonic price model, which is designed to captures the contributions of structure and location attributes to property values. Results indicate that the appreciation rates slightly decreased with distance from a MH unit in Buncombe and Wake, but the reverse is true in Pitt. The statistical analyses reveal that proximity to a manufactured home influences the value of nearby site-built residential property. Estimated property values show that the further away from a manufactured home, the higher the site-built property value, other things being equal.     

An intertemporal analysis of the shifting of FHA discount points to buyers

In this paper, hedonic regressions are used to analyze a seven-year sample of monthly sales of bungalows in Chicago. Even when sales are considered within individual sections of Chicago, the FHA dummyindependent variable and the ‘points’-independent variable usually have negative coefficients. In certain areas of Chicago there is an absence of conventional loans and conventionally qualified buyers. Consequently, sellers in these neighborhoods must sell using FHA-insured mortgages and may be prevented from fully shifting points to the FHA buyer in the absence of competing financing alternatives. The use of FHA mortgages in these transactions means that the standard hedonic approach cannot correctly measure the extent of point-shifting because the housing/demographic characteristics decrease sales-prices at the same time the point-shifting increases them. The estimated FHA coefficients reflect the net result of these effects.     

A house price index based on the SPAR method

Within the European Union there has been a push to provide European governments and the European Central Bank with the statistics they need for monitoring the owner-occupied sector. This paper reports on the results of a project to develop a house price index for the Netherlands. From January 2008, Kadaster, the Dutch land registry office, and Statistics Netherlands began jointly publishing house price index numbers for the whole country and for some specific dwelling types and regions. A number of special institutional features of the situation in the Netherlands contributed to the choice of index construction method. The indexes are computed using the Sale Price Appraisal Ratio (SPAR) method, which utilizes the ratios of transaction prices and previous appraisal values. We describe the SPAR method, compare it with repeat sales methods and assess the reliability of the official Dutch appraisal values. Empirical results for January 1995–March 2009 are presented. The SPAR method performs well compared to repeat sales, and the results reported will be of interest to other countries that have, or could instigate, institutional arrangements similar to those in the Netherlands.     

A prediction comparison of housing sales prices by parametric versus semi-parametric regressions

This study estimates a hedonic price function using a semi-parametric regression and compares the price prediction performance with conventional parametric models. This study utilizes a large data set representing 2595 single-family residential home sales between July 2000 and June 2002 from Pitt County, North Carolina. Data from Geographic Information Systems (GIS) are incorporated to account for locational attributes of the houses. The results show that the semi-parametric regression outperforms the parametric counterparts in both in-sample and out-of-sample price predictions, indicating that the semi-parametric model can be useful for measurement and prediction of housing sales prices.     

Determinants of retail sales in SMSAs

This paper develops a theoretical model to explain consumer behavior in the context of spatially extensive retail markets. Several socio-economic variables influencing total and per capita retail sales are identified and their effects on sales are predicted. The theoretical framework presented in this paper serves to link location theoretic arguments to the retail trade arena and to provide a guideline for the empirical work reported. The empirical work encompasses nine retail trade sectors plus retailing in the aggregate. Good results are obtained for total sales and credible results for per capita sales using data from 229 United States SMSAs.     

Option value and the price of teardown properties

The introduction of uncertainty over the future price of structural capital into a model of teardowns implies a value to delaying the demolition vs. preservation decision, and that the market price of a redeveloped property may increase with its quantity of structural capital. Using data from an active teardown market, we test the model’s prediction that hedonic price function coefficients depend on the expected time between sale and demolition. As predicted, structural variables have significant effects on the sales prices of both teardown and non-teardown properties, and the effects are generally much larger the lower the estimated teardown probability.     

An alternative test of the hedonic theory of housing markets

In this paper the hedonic theory of housing markets is used to generate a multinomial logit model of household behavior in an urban housing market. Application of hedonic theory to housing markets is by now fairly familiar and a link to multinomial logit has also been established. However, by emphasizing more heavily the bid price interpretation of hedonic theory, this paper develops a new connection to econometric estimation that essentially involves running the usual logit equations in reverse. One advantage of this approach is that the link between the logit equations and hedonic theory involves bid price rather than utility functions, and this in turn permits the empirical results to be given an extremely clear interpretation. Furthermore, in contrast to the standard logit model, the extreme value distribution required to justify the estimation technique emerges endogenously as part of the analysis.     

一种新的利用网络爬虫技术的土地价格指数编制方法

研究目标：目前有关中国土地价格指数的研究没有考虑不可观测特征的影响,本文给出一种可以控制不可观测特征的土地价格指数编制方法。[HTH]研究方法：通过结合传统的特征价格模型和重复交易模型,提出固定地理单元并利用组内差分以控制地块不可观测特征,提出了一种新的土地价格指数编制方法。[HTH]研究发现：[HTF][STBZ][WTBZ]以上海为例讨论了分类土地价格指数,研究发现从2008~2015年,上海同质住宅用地价格上升了359.92%,同质工业用地和商服用地价格的涨幅分别为101%和107%。[HTH]研究创新：利用网络爬虫技术收集微观土地交易数据,为指数的编制提供了数据基础。[HTH]研究价值：该方法能够捕捉地块所在的特殊位置对于其价格的影响。     

Residential choice,hedonic prices,and the demand for urban air quality

This paper uses a two-step estimation procedure suggested by Sherwin Rosen to estimate structural demand and supply equations for urban air quality. In the first step, a hedonic price equation is estimated for residential property values for the Washington, D. C., SMSA for 1970. In the second step, a set of marginal hedonic prices is generated. These prices and the quantity of clean air (reciprocal of air pollution) are used as endogenous variables in a simultaneous equation model. Empirical results indicate a price elasticity of demand between ?1.2 and ?1.4 and a unitary income elasticity.     

HEDONIC PRICE INDEXES FOR RESIDENTIAL HOUSING: A SURVEY,EVALUATION AND TAXONOMY

Every house is different. It is important that house price indexes take account of these quality differences. Hedonic methods which express house prices as a function of a vector of characteristics (such as number of bedrooms and bathrooms, land area and location) are particularly useful for this purpose. I consider here some developments in the hedonic methodology, as it is applied in a housing context, that have occurred in the last three decades. A number of hedonic house price indexes are now available. However, it is often difficult to see how these indexes relate to each other. For this reason I attempt to impose some structure on the literature by developing a taxonomy of hedonic indexes, and then show how existing indexes fit into this taxonomy. Also discussed are some promising areas for future research in the hedonic field. In particular, greater use needs to be made of spatial econometric and nonparametric methods to exploit the increased availability of geospatial data. The main criticisms of the hedonic approach are evaluated and compared with those of the repeat‐sales and stratified median methods. The overall conclusion is that the advantages of the hedonic approach outweigh its disadvantages.