Hedonic House Price Model Research Articles

Households' Utilities and Hedonic Prices for Inner-City Homes

The housing-consumption preferences of a sample of inner-city owner-occupants in Saskatoon are recovered from their unconstrained residential preferences for housing and neighbourhood types. These unconstrained utilities are quantitatively compared with implicit prices for the same housing and neighborhood types, computed from a hedonic housing price model. A first finding is that the households preferred the levels of eight of the twelve residential attributes that were also the higher priced. In contrast, a second finding was that their unconstrained utilities were negatively monotonically related to the hedonic price scales for four attributes, neighborhood housing, renovation/basement, age of construction, and family life cycle of the neighborhood people. The salience of these four divergences between the scales of value, in terms of future land-use and social change in inner-city neighborhoods, is discussed.

Hedonic housing prices and the demand for clean air

This paper investigates the methodological problems associated with the use of housing market data to measure the willingness to pay for clean air. With the use of a hedonic housing price model and data for the Boston metropolitan area, quantitative estimates of the willingness to pay for air quality improvements are generated. Marginal air pollution damages (as revealed in the housing market) are found to increase with the level of air pollution and with household income. The results are relatively sensitive to the specification of the hedonic housing price equation, but insensitive to the specification of the air quality demand equation.

A Comparison of Block Group and Census Tract Data in a Hedonic Housing Price Model

The consideration of neighborhood effects in urban and regional models has been constrained by data inadequacies. Analysts have customarily used data aggregated at the census tract level to characterize areas differentiated by public service provision or socioeconomic composition. This paper introduces use of the block group, an aggregation unit typically 20 to 25 percent of the size of a census tract, formulated for general use in the 1970 censuses for all urbanized areas. 1