Abstract
We study the relationship between cultural heritage and city structure in a residential sorting model. Contrary to previous research, we find that all income groups attach a large value to the proximity of urban heritage while there are important differences associated with other household characteristics. In line with previous research, we find that all households attach value to the share of high-income households in neighborhoods. Our approach covers both elements and we use the estimated version to investigate the overall impact of cultural heritage on within-city structure. We simulate the housing market equilibrium in a counterfactual situation without spatial differences in the presence of cultural heritage. The results suggest that without highly valued inner city amenities, households’ location choice in European cities, such as Amsterdam, would be much more similar to US cities.
Highlights
Urban amenities are closely related to the current urban revival
We develop and estimate a residential sorting model in which urban heritage – indicated by conservation areas – has a direct impact on the residential choice behavior of households, while we incorporate preferences for demographic composition similar to Bayer et al (2007) that may cause an additional impact of this amenity on neighborhood attractiveness for particular groups
We find that households in all income groups attach a large value to urban heritage in their neighborhood, which we measure as the area that is part of a conservation area
Summary
Urban amenities are closely related to the current urban revival. The decentralization of employment, the improved possibilities for communication and the secular decrease in transport costs have weakened the strength of traditional forces behind the concentration of economic activities. European cities ancient buildings – the canal houses in Amsterdam are a clear example – are regarded as highly attractive urban heritage and are often inhabited by high income people.2 This observation suggests that, under appropriate conditions, old housing may contribute to the concentration of high income households in city centers. An overrepresentation of high income households in conservation areas will have a further impact on the area’s attractiveness through preferences for demographic composition To investigate these issues, we develop and estimate a residential sorting model in which urban heritage – indicated by conservation areas – has a direct impact on the residential choice behavior of households, while we incorporate preferences for demographic composition similar to Bayer et al (2007) that may cause an additional impact of this amenity on neighborhood attractiveness for particular groups.
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