House Price Differentials Research Articles

Racial Housing Price Differentials and Neighborhood Segregation

Racial Housing Price Differentials and Neighborhood Segregation

FACTORS DETERMINING THE DIFFERENTIATION OF HOUSING PRICES IN AKTOBE

There are several factors that determine the differentiation of housing prices in the city of Aktobe. These are the quality of housing, the condition of apartments, location, proximity to the center, environmental condition, transport accessibility, etc. Due to its demand and high investment attractiveness, the city has been ahead of average Kazakh indicators in terms of housing price growth in recent years. One of the most dynamically developing housing markets in Kazakhstan is the city of Aktobe. The development of the real estate market contributes to the development of the national economy, thereby creating a favorable investment climate for investors. An increase in the income level of residents can increase the availability of housing in the city through fiscal policy instruments. The relevance of the article is related to the need to analyze trends and prospects for the development of the Aktobe real estate market, as it is of great social importance for market participants. The purpose of the study is to analyze the influencing factors and trends in the development of the real estate market in the city of Aktobe. A comparative analysis method was used to analyze the residential real estate market. The research methods was used in the article are statistical data analysis, retrospective analysis and logical approaches. At the conclusion of the study, it was found that there are many differences in the housing affordability index and in the trends in the development of the real estate market in similar geographical and economic conditions of the city of Aktobe.

How Much Are Amenities Worth? An Empirical Study on Urban Land and Housing Price Differentials across Chinese Cities

As China is transitioning from a planned economy to a market-based economy, over the past 30 years, China’s economy has experienced the same type of changes that led to amenity-driven housing and land markets in more developed countries. This paper examines the effect of different types of amenities on urban land and housing prices across Chinese cities in 2020. When firms and households value some amenities, the assumption is that the preference for these amenities will be valued and reflected in both land and housing markets. We conduct a cross-sectional analysis of urban land and housing prices in prefecture and higher-level cities in China. We extend the Roback model to explore the extent to which the different land rents and housing prices reflect the compensations for interregional amenity differences across Chinese cities. We include two types of amenities: natural amenities and locally produced amenities. We perform two-stage least squares (2SLS) estimations and compute the implicit prices of various amenities for households and firms. The empirical results show that a range of amenities is valued by both households and firms, resulting in higher housing and industrial prices.

Spatial differentiation of housing prices and mechanism of influence in a shrinking city: A case study of Hegang

Spatial differentiation of housing prices and mechanism of influence in a shrinking city: A case study of Hegang

Spatial differentiation of housing prices and mechanism of influence in a shrinking city:A case study of Hegang

Spatial differentiation of housing prices and mechanism of influence in a shrinking city:A case study of Hegang

Determining the environmental situation as a factor in the differentiation of housing prices in Nur-Sultan by using the Analytic Hierarchy Process

Modern cities, being centers of intellectual activity, trade, culture, science and development, are becoming places of attraction for people. It is in urban conditions that the economic and social evolution of man takes place. At the same time, as urbanization grows, a number of problems arise, including environmental ones. Therefore, it is necessary to take environmental factors into account when planning urban development, housing construction and creating infrastructure. This study is devoted to the application of the method of hierarchy of stochastic systems using the technology of geographic information systems, allowing to assess the adequacy of the cost of housing in relation to the environmental situation in the city of Nur-Sultan.

Pair-wise convergence of intra-city house prices in Beijing

This paper examines the long-run convergence of houses prices across the eighteen Beijing districts using monthly dataset that span from January 2006 to December 2014. Following a pair-wise approach, we conduct unit root tests on all N(N-1)/2 possible pairs of housing price differentials across the N districts of Beijing. By doing so we do not select any base-district or regional average as the benchmark. A two-stage approach is employed. In the first stage, unit root tests are employed to investigate the convergence (stationarity) of house price differentials across Beijing. Over half of the intra-city house price differentials are found to be stationary. The second stage of the analysis investigates the drivers of convergence. The probability of a pair being stationarity is negatively affected by income differentials across the eighteen districts, as well as the demographics differentials and supply-side factors. Last, we reveal that the half-life of a shock towards long-run price equilibrium is positively affected by distance and housing supply while little evidence can be found for the influence of income and population density.

Florida Metropolitan Housing Markets: Examining Club Convergence and Geographical Market Segmentation

This study explores the convergence of housing prices for 21 metropolitan areas within the state of Florida for the quarterly period 1987:2 to 2017:3. The examination of house price differentials between metropolitan and state-level house prices using a battery of univariate and panel unit root testing approaches yielded mixed results with respect to the presence of convergence. However, the Phillips-Sul (2007; 2009) club convergence approach identifies four distinct convergence clubs for metropolitan area house prices within Florida with a relatively clear geographical segmentation of the housing market.

Environmental amenities and quality of life across the United States

This paper investigates the spatial variation in subjective well-being across the United States. We match individual-level survey data from the Behavioral Risk Factor Surveillance System (BRFSS) that includes a life-satisfaction question, to county-level local amenities between 2005 and 2010. We show that life satisfaction varies widely across U.S. counties (even if these are in the same state and after controlling for individual characteristics), which suggests that housing price and wage differentials are not fully compensating for differences in amenities across locations. We also show that local amenities including climate, geography, environmental externalities, and other local public goods, explain a sizable fraction of this variation, stressing the importance of environmental management across space.

Perspectives of Socio-Spatial Differentiation from Soaring Housing Prices: A Case Study in Nanjing, China

Launched in 1998, the market-oriented reform of urban housing has given urban housing the dual attributes of residence and investment, and led to the rapid growth of housing prices as well as the intensification of its spatial differentiation within cities. However, the spatial patterns of the differentiation and its mechanism as well as socio-spatial effects are rarely touched. This paper studies 3963 urban residential districts in central Nanjing and explores the socio-spatial differentiation pattern and process of the urban housing prices and its growth in Nanjing based on the sample data of housing transactions over 30 quarters during the period of 2009–2017. The paper concludes that, by splitting the research duration into phases of six quarters each, the average housing prices in Nanjing alternates between “rapid growth” and “relatively stable” phases. At the same time, this paper finds that the spatial heterogeneity of housing prices in the city has been enhanced constantly, and the price gap in different types of residential housing has been clearly widened. In combination with the price level, location characteristics and architectural attributes of residential districts, this paper has categorized housing in Nanjing into nine typical types in a comprehensive manner. Based on the differences in their spatial attributes such as location, comfort and scarcity etc., different types of residences exhibit different pricing and price-to-rent ratio growth models. Based on those findings, we discussed the mechanism of the socio-spatial differentiation of housing prices in Nanjing from the housing reform and strategies of urban renewal and expansion. Beyond that, we discussed the role of urban housing consumption in the process of (re)production of urban classes, and its negative effects on urban young people, rural immigrants and other disadvantaged families. At the end of the paper, the policy suggestion about the supply-side reform of the housing market to promote socio-spatial equity and sustainable development is also presented.

Regional heterogeneity in age-related housing depreciation rates

This paper analyses the regional variation of age-related depreciation rates for housing: firstly, using observations of single-family house prices, our analysis estimates housing market-specific age-cohort depreciation rates, while taking into account the heterogeneity in attributes, location, and state of maintenance. Secondly, we examine whether the derived depreciation rates correlate with determinants of the regional supply- and demand-side. Considering the durability of the housing stock and substitution effects in housing demand, we find that a rise in excess supply will not only lead to declining house prices in the aggregate, but also to a widening of relative house price differentials among houses at different ages.

A nonlinear pairwise approach for the convergence of UK regional house prices

We examine the long-run convergence across 12 UK regional house prices using a pairwise approach. The time period spans from 1983:1 to 2012:4. Linear, nonlinear and asymmetric unit root tests are considered for assessing the stationarity of all possible pairs. The test statistic for convergence is based on the percentage of unit root test rejections across all regional house price differentials. The percent of the pairs that reject the null increase from 6% in the linear ADF case to 53% for the nonlinear unit root. Probit analysis reveals that house price differentials in the South are more likely to be stationary and as a result tend to converge more compared to the North.

Environmental Amenities and Quality of Life Across the United States

This paper investigates the spatial variation in subjective well-being across the United States (U.S.). We match individual-level survey data from the Behavioral Risk Factor Surveillance System (BRFSS) that includes a life satisfaction question, to county-level local amenities between 2005 and 2010. We show that subjective well-being varies widely across U.S. counties (even if these are in the same state and after controlling for individual characteristics), which suggests that housing price and wage differentials are not fully compensating for differences across locations. We also show that local amenities including climate, geography, environmental externalities, and other local public goods, explain a sizable fraction of this variation.

Quantifying changes in risk perception through house price differentials following the catastrophic Canterbury earthquake event

Studies of risk perception across multiple disciplines conclude similar findings, one of which is that the perceived risk of extreme and rare events, such as earthquakes, is underestimated before the event and overestimated after the event occurs. This paper examines whether this change in risk perception is detected in price differentials for housing. A Difference-in-Difference (DID) model is used to model the events utilizing control and treatment variables to estimate price determinants. The findings indicate that after the 22 February 2011 Canterbury earthquake consumers’ are paying premiums of 15.1, 18.8 and 16.1% to live on no risk, low risk and medium risk land, respectively, compared to high risk zoned land. This supports the hypothesis that consumers’ perception of risk became more acute after experiencing an extreme event. Risk premiums associated with safer land zones are not evident in the coefficients for control variables implying there was no accounting for land risk before the earthquakes.

A Pair-wise Analysis of Intra-city Price Convergence Within the Paris Housing Market

We examine long-run house price convergence across the twenty Paris districts using a quarterly dataset that spans from 1991 to 2014. Our approach is based on two stages. In the first stage, we apply methods of unit root testing. Our econometric modelling exercise adopts a pair wise approach that is built on a probabilistic test for convergence based on all house price differentials across the Paris districts. We find that more than 50 % of the intra-city house price differentials that can be computed are stationary. In the second stage of our investigation, we analyse the drivers of convergence. The probability of stationarity is negatively affected by unemployment differentials across districts, demographics differentials and supply-side characteristics. Our findings further reveal that the half-life of a shock to long-run price equilibrium is affected positively by unemployment, distance and housing supply. Our analysis suggests that smaller distances between Parisian districts are associated with a faster speed of adjustment back towards long-run equilibrium.

Impact of urban landscape and environmental externalities on spatial differentiation of housing prices in Yangzhou City

In this study, housing prices data for residential quarters from the period 2001–2012 were used and Global Differentiation Index (GDI) was established to measure the overall differentiation trend in housing prices in Yangzhou City, eastern China. Then the influence of the natural landscape and environment on prices of global housing market and housing submarkets was evaluated by the hedonic price model. The results are shown as follows. (1) There have been increasing gaps among housing prices since 2001. In this period, the differentiation trend has shown an upward fluctuation, which has been coupled with the annual growth rate of housing prices. (2) The spatial distribution of residential quarters of homogenous prices has changed from clustered in 2001 into dispersed in 2012. (3) Natural landscape and environmental externalities clearly influence spatial differentiation of housing prices. (4) In different housing submarkets, the influence of natural landscape and environmental externalities are varied. Natural landscape characteristics have significant impact on housing prices of ordinary commercial houses and indemnificatory houses, while the impact of environmental characteristics have obvious influence on housing prices of cottages and villas.

Does culture affect local productivity and urban amenities?

Does a better cultural milieu make a city more livable for residents and improve its business environment for firms? I compute a measure of cultural specialization for 346 U.S. metropolitan areas and ask if differences in cultural environment across cities capitalize into housing price and wage differentials. Simple correlations replicate standard results from the literature: cities that are more specialized in cultural occupations enjoy higher factor prices. Estimations using time-series data, controlling for city characteristics and correcting for endogeneity weaken the magnitude of this effect. Even though the arts and culture might be appealing to some people and firms, such determinants are not strong enough to affect factor prices at the city level.

Testing for long-run convergence across regional house prices in the UK: a pairwise approach

This article tests for stochastic convergence in UK regional house prices using the recently developed pairwise approach. This approach allows for unit root tests to be conducted on all N(N − 1)/2 possible pairs of house price differentials across N regions in the UK, thus avoiding the need to choose a base region or alternative national figure as the benchmark. Using mix adjusted house price data from 1973:Q4 to 2008:Q4, the main finding is that there is no evidence of long run convergence among regional house prices or of an equilibrium relationship towards which UK regional house prices have a tendency to gravitate.

What are the Welfare Costs of Shoreline Loss? Housing Market Evidence from a Discontinuity Matching Design

This paper uses housing market data to estimate the welfare costs of shoreline loss along coastal beaches in Florida. I develop a forward-looking structural model of a housing market in which a time-variant housing characteristic (beach width) follows a Markov process. I use this model to provide an exact welfare interpretation for the coefficients from three empirical research designs: (1) a repeat-sales panel regression of housing prices on beach width; (2) a differences-in-differences approach based on sharp changes in beach width caused by beach nourishment projects; and (3) a new discontinuity matching research design that exploits capitalized housing price differentials created by predictable changes in future beach width. Using a unique panel dataset on housing sales, beach width survey measurements, and the timing of 204 beach nourishment projects along 300 miles of Florida's coastline, I then use each of these research designs to estimate homeowners' willingness to pay for an extra foot of sand. In contrast to previous work, I find that changes in beach width have little impact on housing prices, except possibly at very eroded beaches. The results imply that the welfare costs of sea level rise may be low up to a threshold, and then increase sharply.

Investigating regional house price convergence in the United States: Evidence from a pair-wise approach

In this paper we examine long-run house price convergence across US states using a novel econometric approach advocated by Pesaran (2007) and Pesaran et al. (2009). Our empirical modelling strategy employs a probabilistic test statistic for convergence based on the percentage of unit root rejections among all state house price differentials. Using a sieve bootstrap procedure, we construct confidence intervals and find evidence in favour of convergence. We also conclude that speed of adjustment towards long-run equilibrium is inversely related to distance.