Residential Property Values Research Articles

THE IMPACT OF INSTITUTIONAL LANDUSES ON RENTAL VALUE OF RESIDENTIAL PROPERTIES IN AGBANI, ENUGU, NIGERIA

Agbani, Enugu Nigeria was a rural community until three very important institutions were moved by the governor to that location. This study therefore investigates the impact of Institutional Landuses on rental values of residential properties in Agbani. The study tried to determine the trends in rental values of residential accommodations in Agbani before and after the institutions came. It also compared the rent in Agbani with that of surrounding communities of Amuri, Amodu, Ugbawka and Akpugo. The study adopted the survey research methodology and covered tenement rooms, self contained rooms, one bedroom flats, two bedrooms flats and threebedroom flats. Rental survey was carried out between 1999 and 2014. A one way ANOVA was used to test the hypothesis. It was discovered that there was a statistically significant difference between rental values before and after the institutions came. Also the survey shows a significant difference between rental values of residential accommodations in Agbani and that of surroundingcommunities. The study therefore recommended among other things that institutional landuses should be used as a fulcrum that drives development in under-developed and developing countries of the world.

Effects of Noise Pollution on Residential Property Value in Enugu Urban, Nigeria

One of the persistent environmental issues today is high noise levels in residential areas especially in the developing countries. There are several unorganized informal sector activities such as recreational, road traffic, household and religious activities, operation of power generating sets, incompatible uses in space among others that are the sources of noise pollution in residential areas. A number of empirical studies have been carried out on the impact of noise on residential property values. However, one finds it very difficult to ascertain whether noise pollution affects residential property value in Enugu Urban. The aim of this study is to ascertain whether noise pollution has significant influence on residential rental values in the study area. The study has discovered that residential properties affected by noise pollution have lower rental value compared to those unaffected by 3.1% of its rental value. The study has provided some insight to guide property buyers or users, investors, property managers, and valuers as regards property transactions. The study has suggested that property value spatial index of noise pollution in the study area can be built and use as a guide for urban management strategy to achieve sustainable development.

How Does Residential Property Market React to Flood Risk in Flood-Prone Regions? A Case Study in Nagoya City

To quantify the flood risk awareness of real estate market participants and residents, previous studies analyzed the effect of flood risks on residential property values. However, most studies focused on the impact of recent flood events and the publication of new flood risk information; the behavior in flood-prone regions in which repeated damages occurred and lessons learned consequently has not been the focus of analysis. Moreover, there is a growing national concern in Japan about an increase in future flood risks due to climate change, although their effect on property values has not been discussed. In this study, we analyzed residential property values in Nagoya City (Aichi Prefecture, Japan), a megacity that has experienced significant flood damage in major historical and recent floods. The main objective of this study is to determine the effects of past and recent flood experiences and the increasing concerns about flood risks on recent residential property values. The results revealed that historical flood damage had the largest impact on residential property values in Nagoya City, and devaluation increased due to growing concerns about natural disasters in Japan. The disclosure of flood risk information also had an impact on property values, increasing devaluation after disclosure. On the contrary, the occurrence of recent floods did not have an impact on property values, suggesting that flood risk awareness had already been strong in the target area. These findings are different from those of many previous studies. The observed trends in residential property values in the target area are likely a characteristic response in flood-prone regions, where flood risk awareness is enhanced due to repeated flood damage.

What the Frack? The Impact of Seismic Activity on Residential Property Values

We utilize the US Geological Survey (USGS) Did You Feel It? (DYFI) system to estimate the impact of induced earthquake activity on residential property values in Oklahoma City. Hedonic models based on DYFI analyses report a higher-pricing discount for residential properties from 2010 to 2015 compared to analyses based on traditional MMI measurements. We also find that lower income households experience larger pricing impacts relative to higher-income households; however, the pricing impacts begin to dissipate in 2016 coinciding with legislation mandating a reduction in induced seismic activity. Our findings raise potential policy implications for future unconventional oil and gas development, hydraulic fracturing, and wastewater disposal.

Comparing Residential Property Values in Border Towns of Lagos Megacity, Nigeria

Comparing Residential Property Values in Border Towns of Lagos Megacity, Nigeria

Storm surges, informational shocks, and the price of urban real estate: An application to the case of Hurricane Sandy

The impacts of a major hurricane on residential real estate can be devastating. Hurricane Sandy in New York City (NYC) is among the examples of how flooding can unexpectedly extend beyond FEMA flood zones. Such surprises or negative shocks can provide property owners—especially those not flooded—with new information about future flood risks, based on the difference of the property distance from the mapped flood zone and the distance to the actual locations of flooding. We use a difference-in-differences approach to quantify the effects of these shocks on residential property values for non-flooded NYC properties after Sandy. The short-run negative “surprise” effect was to lower NYC housing prices by about 6%–7% for each mile (or about 2% per standard deviation) difference between the property distance from the flood zone and the distance to the actual locations of flooding. The corresponding positive “surprise” effect is insignificant. The long-term surprise effects of flood risk on housing prices tend to disappear, as residents’ memories of the surprise fade and they seem to only recall the actual storm surge several years after the hurricane.

Metro station inauguration, housing prices, and transportation accessibility: Tehran case study

The opening of a new metro station, as a mode of the transportation corridor, potentially could have different effects on housing prices. We have investigated its effect on the value of residential properties around those stations, using data from large expansions of the metro network in Tehran, Iran. In the period of our study (April 2010 to December 2018), forty-five metro stations were inaugurated in Tehran. We use a difference-in-difference regression method to identify the causal effect of interest, where adjacent properties are used as the treatment group and similar but distant properties as the control group. The results indicate that, on average, the adjacent properties are affected by a 3.7 percent increase in price relative to distant properties. We also extend our study by categorizing new metro stations according to the extent of ex-ante access to other modes of public transportation such as bus rapid transit (BRT). We find 2 to 11 percent positive effect of new metro stations in regions with lower public transport, while in regions with ex-ante extensive public transportation system, we find less than 2 percent positive effect.

The impact of urban light rail transit on double-story terraced property values in the Greater Kuala Lumpur, Malaysia

Introducing a rail transit system into an urban region is expected to increase land values, and subsequently, residential property values. Despite this general belief, there has been limited research on the impact of proximity to urban light rail transit stations in developing countries setting. This study, therefore, investigates the impact of proximity to urban light rail transit on double-story terraced property values in the Greater Kuala Lumpur, Malaysia, using hedonic pricing model. The findings suggest urban light rail transit has a positive and significant impact on surrounding double-story terraced residential property values – estimated at a premium of 12.3% and 9.8% for properties located up to 1000 m and 1001 – 2000 m to the nearest light rail transit station respectively. The findings of the study are useful for investors and developers, namely to build more houses near urban rail transit infrastructure since they lead to significant appreciation in value.

NET BENEFITS OF URBAN SLUMS REDEVELOPMENT POLICIES ON THE VALUE OF ADJACENT RESIDENTIAL PROPERTY

Over time, the government of Pakistan introduced several strategies to deal with the issue of slums in its capital city, Islamabad. Contrary to the traditional strategies that primarily focus on the tenure security of occupants, the strategy of slum redevelopment is more composite. It involves the up-gradation of slums in their existing sites as well as the demolition of slums from the posh areas. The present study is first to empirically investigates the outcomes of the slums redevelopment policies on the value of adjacent residential properties. Using a rental valuation based hedonic price model, the study examined the spillover effects of an urban slum up-gradation and eviction projects on the nearby housing values. The results show that the redevelopment of slums reduces the adverse effects on residential value. It is essential for the urban planners to cautiously include the slum redevelopment projects spillover effects on the adjacent property value in different geographical locations, to maximize the net positive effects of improvements on the neighborhood.

Impacts of light rail transit development on neighborhood health: A scoping review through a social determinants of health lens

IntroductionLight rail transit (LRT) has become a popular intervention for addressing the social and economic complexities associated with urban growth. LRT development can exert influence on neighborhood characteristics, such as property values, employment opportunities, and service access. Many of these changes can impact the health of nearby residents by influencing their exposure to the social determinants of health (SDOH). This study maps the literature on LRT development through an SDOH lens and comments on gaps and implications for neighborhood health and transit planning. MethodsThe Arksey and O'Malley scoping review methodology was used to examine existing literature on neighborhood-level impacts of LRT development related to the SDOH. Peer-reviewed articles were included if they focused on an LRT project in an urban center in Canada or the United States, reported on a neighborhood-level impact related to the SDOH, and were published in English between 2004 and 2019. Standardized information was extracted from each included article and thematic analysis was applied to generate impact themes. ResultsA search of three databases yielded 767 non-duplicate records and 29 studies were included in the review. Six impact themes were identified: property values, neighborhood demography, economy, development, transit, and neighborhood perceptions. LRT development was associated with residential property value increases, high-density residential development, new business openings, and increases in neighborhood household income. Articles had limited recognition of the role of LRT development in creating health disparities. ConclusionsThis review demonstrates that transit development can influence the living conditions and resource availability of surrounding areas. Since many of the impacts identified in this study can further social stratification or have differential effects by socioeconomic status, LRT development can be conceptualized as a driver of health inequities. In order to design more effective and equitable transit policy, future research should position transit development as an SDOH.

Storm Surges, Informational Shocks, and the Price of Urban Real Estate: An Application to the Case of Hurricane Sandy

The impacts of a major hurricane on residential real estate can be devastating. Hurricane Sandy in New York City (NYC) is among the examples of how flooding can unexpectedly extend beyond FEMA flood zones. Such surprises or negative shocks can provide property owners—especially those not flooded—with new information about future flood risks, based on the difference of the property distance from the flood zone and the distance to the actual locations of flooding. We use a difference-in-differences approach to quantify the effects of these shocks on residential property values for non-flooded NYC properties after Sandy. The short-run negative “surprise” effect was lower NYC housing prices by about 6%-7% for each mile (or about 2% per standard deviation) difference between the property distance from the flood zone and the distance to the actual locations of flooding. The corresponding positive “surprise” effect is insignificant. The long-term “surprise” effects of flood risk on housing prices tend to disappear, as residents’ memories of the “surprise” fade and they seem to only recall the actual storm surge several years after the hurricane.

The impact of Airbnb on residential property values and rents: Evidence from Portugal

This article quantifies the impact of Airbnb’s short-term rentals on housing affordability in Portugal. We find that on average a 1pp increase in a municipality Airbnb share results in a 3.7% increase in house prices. When zooming our analysis to the main cities of Lisbon and Porto, we find that a 1pp increase in a civil parish Airbnb share leads to a 3.2% price increase. Finally, exploring the spatial heterogeneity of the impact of Airbnb within the two cities we find strong effects localized in the historical centers and areas attractive to tourists. Compared to a low touristy parish, house prices in a high touristy parish increased by 24.3% in 2015 and 32.3% in the 1st quarter of 2016, relatively to pre-Airbnb expansion period (pre-2014Q2).

A comparative study of rental value of residential properties at border communities of Lagos and Ogun States, Nigeria

This study delves into the pattern and level of development of two adjacent border communities of Lagos and Ogun States, Nigeria to compare the effect on rental values of residential properties in the two communities. The study attempted to find out if there are significant differences as well as definite relationship between the values. Questionnaires were distributed to two groups of respondents which are 84 estate surveying and valuation firms in Ikeja, Lagos and 152 residential property owners/residents in the two communities. Data were analysed with statistical tools such as tables, percentages and mean. Student’s t-test statistics was used to ascertain the difference in rental values while Pearson coefficient of correlation was used to establish the degree of relationship. The importance of factors influencing rental values was determined using the relative importance index. Analysis were presented in percentages, tables and charts and then discussed. Result showed that there are significant statistical differences in rents of the two communities despite the proximity. It was further observed that neighbourhood density and level of infrastructure development play vital roles in the gaps observed in rental values. However, the Pearson correlation coefficient revealed that there is a relatively strong positive correlation between rental values of properties in the two communities. The research therefore concluded that for property market on the Ado-Odo/Ota side of the emerging Lagos megacity to attain its full potential, there is the need for major urban renewal, investment in physical and economic infrastructure via partnership with private sectors and property owner in the communities.

Hog Barns and Neighboring House Prices: Anticipation and Post‐Establishment Impacts

The impact of large‐scale hog barns on residential property values is at the forefront of local concerns about livestock development. In this article, I examine the impact of hog barns on house prices in an intensive production region of Manitoba, Canada. Timing of barn establishment and precise locations of houses and barns are used to gain a better understanding of the dynamic impacts of hog barns on house prices. I find that houses within 2 km of a hog barn sell for 5.7% less than similar houses located a little farther away from a barn. Quasi‐myopic specifications indicate that house prices fall by 6.2% up to three years prior to barn establishment, consistent with market anticipation of the future location of hog barns. Accounting for anticipation increases the post‐establishment discount to 8%, suggesting that ignoring anticipation of new barn establishment biases estimated post‐establishment impacts downwards.

Systematic Variation in Waste Site Effects on Residential Property Values: A Meta-Regression Analysis and Benefit Transfer

This article presents a meta-analysis based on 727 estimates from 83 hedonic pricing studies to provide new insights on the effects of waste sites on residential property values. Relative to previous meta-analyses on this subject, estimates are corrected for publication bias and the ability of the meta-regression model to produce reliable benefit-transfer estimates is assessed. Proximity to severely contaminated waste sites has a supremely negative impact on residential property values, whereas on average the distance from non-hazardous waste sites has no effect. Correcting for publication bias has a sizeable impact, reducing the average effect size by up to 38%. Benefit-transfer errors based on the meta-regression model are fairly large and, in line with the broader literature, outperform simple value transfer when the underlying data sample is heterogeneous.

Proximity to freshwater blue space and type 2 diabetes onset: The importance of historical and economic context

Salutogenic effects of living near aquatic areas (blue space) remain underexplored, particularly in non-coastal and non-urban areas. We evaluated associations of residential proximity to inland freshwater blue space with new onset type 2 diabetes (T2D) in central and northeast Pennsylvania, USA, using medical records to conduct a nested case-control study. T2D cases (n = 15,888) were identified from diabetes diagnoses, medication orders, and laboratory test results and frequency-matched on age, sex, and encounter year to diabetes-free controls (n = 79,435). We calculated distance from individual residences to the nearest lake, river, tributary, or large stream, and residence within the 100-year floodplain. Logistic regression models adjusted for community socioeconomic deprivation and other confounding variables and stratified by community type (townships [rural/suburban], boroughs [small towns], city census tracts). Compared to individuals living ≥ 1.25 miles from blue space, those within 0.25 miles had 8% and 17% higher odds of T2D onset in townships and boroughs, respectively. Among city residents, T2D odds were 38–39% higher for those living 0.25 to < 0.75 miles from blue space. Residing within the floodplain was associated with 16% and 14% higher T2D odds in townships and boroughs. A post-hoc analysis demonstrated patterns of lower residential property values with nearer distance to the region’s predominant waterbody, suggesting unmeasured confounding by socioeconomic disadvantage. This may explain our unexpected findings of higher T2D odds with closer proximity to blue space. Our findings highlight the importance of historic and economic context and interrelated factors such as flood risk and lack of waterfront development in blue space research.

Inedible Food Waste Linked to Diet Quality and Food Spending in the Seattle Obesity Study SOS III.

Americans waste about a pound of food per day. Some of this is represented by inedible food waste at the household level. Our objective was to estimate inedible food waste in relation to diet quality and participant socio-economic status (SES). Seattle Obesity Study III participants (n = 747) completed the Fred Hutch Food Frequency Questionnaire (FFQ) and socio-demographic and food expenditure surveys. Education and geo-coded tax-parcel residential property values were measures of SES. Inedible food waste was calculated from diet records. Retail prices of FFQ component foods (n = 378) were used to estimate individual-level diet costs. The NOVA classification was used to identify ultra-processed foods. Multivariable linear regressions tested associations between inedible food waste, SES, food spending, Nutrient Rich Food (NRF9.3) and Healthy Eating Index (HEI-2015) scores. Inedible food waste was estimated at 78.7 g/d, mostly from unprocessed vegetables (32.8 g), fruit (30.5 g) and meat, poultry, and fish (15.4 g). Greater inedible food waste was associated with higher HEI-2015 and NRF9.3 scores, higher food expenditures and lower percent energy from ultra-processed foods. In multivariable models, more inedible food waste was associated with higher food expenditures, education and residential property values. Higher consumption of unprocessed foods were associated with more inedible food waste and higher diet costs. Geo-located estimates of inedible food waste can provide a proxy index of neighborhood diet quality.

Estimating the Impacts of Proximity to Public Transportation on Residential Property Values: An Empirical Analysis for Hartford and Stamford Areas, Connecticut

Public transit infrastructure may increase residential property values by improving accessibility and reducing commute expenses in urban areas. Prior studies have investigated the impacts of the proximity to public transportation on property values and obtained mixed conclusions. Many of these studies were focused on one transit mode for a single city. In this study, a hedonic pricing model is constructed to investigate the impacts of commuter rail/Bus Rapid Transit (BRT) and bus lines separately in two different areas: the Stamford area (Stamford–Darien–New Canaan) and the Hartford area (Hartford–West Hartford–East Hartford), Connecticut. Comparison of the results from Ordinary Least Square and Geographically Weighted Regression (GWR) indicates that estimation accuracy can be improved by considering local variation. Results from GWR show that impacts of proximity to bus and rail/BRT on property values vary spatially in the Hartford area. Negative impacts of bus stops are found in downtown Hartford and positive impacts in the west and east sides of Hartford. Impacts from rail/BRT are relatively minor compared with bus lines, partly due to the relatively recent launching of the BRT and Hartford rail line. In contrast, most properties in the Stamford area show appreciation towards rail service and depreciation to bus service. This study reveals the roles of different public transit systems in affecting residential property values. It also provides empirical evidence for future transit-oriented development in this region for uplifting the real estate market.

Identifying the effects of a land-use policy on willingness to pay for open space using an endogenous switching regression model

An open space offers a stream of economic, social and environmental benefits. Population growth and extensive forms of economic growth have encroached onto large amounts of open space, converting forests, parks, grasslands and crop fields to developed uses, including residential, commercial and industrial. Analysts have used hedonic pricing techniques to estimate the capitalization of the values of open space into residential property values and the effects of changes in land-use policies on property values. Few of those studies have considered the possibility that property transactions may not occur randomly under different policy regimes. House sellers, buyers and developers respond to land use policies in their sale and purchase behaviors, thus changing the portfolio of houses for which sales data are available in a particular period. Such non-randomness can further bias the policy assessment using regression analysis. We address this issue by estimating the effects of a new development policy on WTP for open space as well as property values while correcting the selection bias that can arise as the result of self-selection. The empirical case is the Town of Okotoks, Alberta, Canada, where a conservation-oriented land use policy was replaced by a more development-oriented policy in 2012. An endogenous switching regression model is utilized to address the bias that could arise through self-selection. Key findings include: (1) selection does have an impact on estimating people's WTPs, and ignoring this issue leads to biased welfare calculations; (2) properties with nearby pastures and croplands were less likely to be traded on the real estate market after the introduction of the policy; (3) WTP for nearby cropland declined by about 1% (CAD 5148) of the average property price, due to the implementation of the new pro-development land policy; and (4) the pro-development policy led to a 8.4 % reduction in the value of Okotoks residential real estate.

The impact of mixes of transportation options on residential property values: Synergistic effects of walkability

Calgary offers many public transportation options, including light rail transit (LRT), bus rapid transit (BRT), and local buses as well as facilities for non-motorized travelers. Yet the individual and synergistic effects of these mobility options on residential property values in Calgary have not been clearly understood. By using a multilevel hedonic modeling approach, we examine the independent and interactive economic impacts of different transportation options on Calgary's residential properties in 2017. Our findings suggest that proximity to LRT and better neighborhood walkability can appreciate residential property values, whereas proximity to major roads and bus service tend to depreciate the values, although the degree and significance vary by property type. When proximity to LRT is coupled with high walkability, more appreciation of property values is expected, particularly in the case of attached houses and apartment properties. Our results imply that urban planners and city officials should strive to create safe and pedestrian-friendly environments near LRT stations that could lead to more dynamic civic activities.