Price Appreciation Rates Research Articles

To the Water's Edge, and Beyond: Effects of Shore Protection Projects on Beach Development

The effects on real estate development of shore protection efforts that lower erosion rates and storm hazards are both controversial and difficult to detect. A simple theoretical model indicates that shore protection is likely to "tilt" development from areas a few hundred feet inland toward beachfront property. Using a modified repeat sale house price index in which price appreciation rates are measured, literally, to the water's edge, we are able to formulate an extremely sensitive empirical test for a tilt in rates of house price appreciation implied by a tilt in produced additional beachfront development in the Florida counties studied. The method used in this paper is quite general and could be used in a number of applications where an environmental effect impacts real estate differentially over space.

Price Dynamics of Owner-Occupied Housing in the Baltimore–Washington Area: Does Structure Type Matter?

This article investigates whether structure type (single-family detached house, town house, or condominium)matters to the price dynamics of owner-occupied housing units. We use a transaction-assessmentdatabase merged with census data. After controlling for lot/structure characteristics, spatial,and temporal effects, our semi-log hedonic regressions suggest that town houses and condominiumsare different from single-family detached houses in real price level and appreciation rates as well asprice volatility.For our sample of data from the Baltimore–Washington metropolitan area from 1973 to 1997, a typicaltown house or condominium unit is significantly more affordable than a typical detached housingunit but costs more per additional square foot. Town houses appreciated less than detached housesin Montgomery County, MD and the city of Baltimore, while appreciating more in Baltimore County.Condominiums have the lowest rates of appreciation in all three locations. Condominiums also consistentlyexhibit higher price volatility.

Spatio-Temporal Measurement of House Price Appreciation in Underserved Areas

In this article, we examine house price appreciation rates and volatility in underserved areas. Theseinclude (1) census tracts with median income at or below 90 percent of the area median income (AMI)and (2) tracts with a minority concentration of at least 30 percent and median income up to 120 percentof AMI. Using 1972 to 1993 data from Dade County, FL, we estimate an expanded repeat-salesmodel that accounts for both space and temporal effects simultaneously.Stressing the exploratory nature of the study, we find that appreciation rates in underserved areasdefined on the basis of median income are at least as high as those in other areas. Conversely, appreciationrates are lower in high minority areas than in the overall market.We also find that all underservedareas exhibit higher volatility than other areas, regardless of the definition used to designatethem.

Controlling for Quality in House Price Indices

Given the importance of house prices it is not surprising that house price indices are used for many purposes. One of the characteristics that differentiates indices is the level of control for housing quality. It is shown that, regardless of the desired level of quality control, it is necessary to account for all significant determinants of house prices that change over time in order to obtain unbiased estimates of house price indices. An example is presented using data from the American Housing Survey that is merged with census tract level information obtained from the Summary Tape Files of the 1980 and 1990 Decenial Censuses. The results show that not accounting for neighborhood quality can lead to substantial biases in estimates of house price appreciation rates.

98/01974 Accounting for growth of total factor productivity as output with exhaustible resource rent: The Kuwaiti oil industry : Al-Ebraheem, Y. and Shebeb, B. The Journal of Energy and Development, 22, (1), 67–79

Under assumptions satisfied by many economic problems, I derive a fundamental new equation for the time rate of change of the optimal value function of any optimal control problem. This is then applied to Hotelling's model of the resource extracting firm. The precise differences between rent depreciation, and depletion charges are discovered, the flow and stock price appreciation rates are distinguished, and novel characterizations of mine value are derived. Most importantly, the correct contribution of mining to net national product (and to sustainable development) follows. In perfect foresight equilibrium, competitively managed mines can appreciate while being exhausted.

Israeli Settlement in Occupied Territories and its Impact on Housing Prices in Israel

The real price of housing in Israel rose 132 percent from 1959 through 1988. This paper investigates the factors standing behind the temporal movement of the real price of housing. Special emphasise is given to the role of government policies that encouraged settlement in occupied territories. A static model of the housing market is formulated and estimated, which takes into account the interrelation between the housing market in Israel proper and the emerging market in the occupied territories. In addition to confirming the role of demand shifters in accounting for the increase in real housing prices, it is found that settlement in occupied territories was an important moderating factor. According to our estimates, settlement in occupied territories accounts for a moderation of 1 percent in the annual rate of price appreciation during the Labor government, and 2.4 percent during the Likud government. These figures are in line with our expectations in view of the different policies pursued by the rival governments.

Measuring the Importance of Location in House Price Appreciation

This paper examines the variation in the rates of price appreciation within an individual metropolitan market. A methodology is developed to examine the locational variation in house price changes in Dade County (Miami) Florida, from 1971 to 1992. House price appreciation appears to be somewhat spatially related; that is, it varies by municipality, with distance from the CBD, with local changes in population and housing units, and by ethnic mix. However, these relationships have minimal explanatory power. Controlling for the census tract group location of each home explains only around 12% of the (residual) variation in the appreciation of individual homes that is not explained by metropolitan-wide changes in house prices. The effect of tract group location appears to be dominated by the idiosyncratic influences of individual homes and their immediate environments.

Resource depletion, national income accounting, and the value of optimal dynamic programs

Under assumptions satisfied by many economic problems, I derive a fundamental new equation for the time rate of change of the optimal value function of any optimal control problem. This is then applied to Hotelling's model of the resource extracting firm. The precise differences between rent depreciation, and depletion charges are discovered, the flow and stock price appreciation rates are distinguished, and novel characterizations of mine value are derived. Most importantly, the correct contribution of mining to net national product (and to sustainable development) follows. In perfect foresight equilibrium, competitively managed mines can appreciate while being exhausted.

Rates of Return on Housing of Low‐and Moderate‐Income Owners

While long‐term returns to capital invested in owner‐occupied housing have been competitive with other investment alternatives, no evidence exists on the market performance of the owner‐occupied housing in which low‐ and moderate‐income households would be most likely to invest. This article thus attempts to answer the question of whether the “affordable housing units” that are relevant to policy discussions concerning low‐ and moderate‐income homeownership have experienced different rates of price appreciation than have higher valued dwellings. The national file of the American Housing Survey is used to estimate appreciation rates by value class in representative U.S. housing markets. We find that for the period 1974 through 1983 appreciation rates for lower valued housing were generally about equal to those for higher valued housing.

Intra‐urban changes in housing prices: Glasgow 1972–83

Abstract Despite the widely acknowledged importance of house prices and the rate of house price appreciation within the urban system there has been relatively little empirical work to explore intra‐urban differentials in these factors. This has been due in some part to the lack of any longitudinal microdata on house prices. This paper uses a unique database held in Glasgow to examine small area change through the decade 1972–83. In particular the wide variations in the rate of house price appreciation will be discussed and related to the characteristics of the houses and their neighbourhoods, as well as local policy on improvements. The observed patterns of price change are somewhat counter intuitive and point to the dangers of making a priori assumptions about the workings of housing markets. We are able to show that in Glasgow an extremely depressed labour market has not led to a depressed housing market.

Intercity Differnces In Home Price Appreciation

The rate of home price appreciation varies substantially among cities. Yet, no prior research on the subject has been uncovered. This paper develops and tests an equilibrium model seeking to explai...

Urban location and housing price appreciation

The rate of appreciation in the asset price of housing is shown to vary systematically with location. Differences in appreciation rates occur because asset prices depend on rates of rental price changes, and the time pattern of rental price changes should vary systematically. Based on theoretical arguments in the literature, rates of rental price appreciation should vary with location, age, and size of the unit. The hypothesis that these factors are also associated with differences in the rate of asset price change is tested using data from five SMSAs. The hypothesis is confirmed for distance from the city center and age of the unit but not for size of the housing unit.

URBAN LOCATION AND HOUSING PRICE APPRECIATION

ABSTRACT The rate of appreciation in the asset price of housing is shown to vary systematically with location. Differences in appreciation rates occur because asset prices depend on rates of rental price changes, and the time pattern of rental price changes should vary systematically. Based on theoretical arguments in the literature, rates of rental price appreciation should vary with location, age, and size of the unit. The hypothesis that these factors are also associated with differences in the rate of asset price change is tested using data from five SMSAs. The hypothesis is confirmed for distance from the city center and age of the unit but not for size of the housing unit.

The empirical relevance of hotelling's model for natural resources

This paper reports the results of an evaluation of the performance of arbitrage models for explaining the price movements for exhaustible natural resources. This appraisal was based on the ex post forecasting performance for eleven years outside the sample period. Data for twelve minerals over the period 1900 to 1973 provided the basis of study. Two features distinguished the alternative descriptions of arbitrage in these resource markets. They are: the description of the process for each natural resource's expected rate of price appreciation, and the measure of the expected rate of return for alternative assets. Overall, the results indicate that the Heal-Barrow (1980) specification was consistently among the ‘best’ models for the twelve minerals studies. It was not, however, uniformly superior to naive models for forecasting price movements.

The timing of residential land development: A general equilibrium approach

A formal model of the development process is constructed in order to arrive at a better understanding of the land development process, the change in land prices over time, and the effects of public policy on these variables. The relationship between the rate of interest and the rate of price appreciation on land is shown to depend upon development costs, agricultural opportunity costs, market structure, and the level of Ricardian rents on land. The effects of a land tax and a capital gains tax on the rate of development are also analyzed.