Residential Property Values Research Articles

An In-Depth Understanding of the Residential Property Value Premium of a Bikesharing Service in Portland, Oregon

Bikesharing (BSS) is an emerging alternative mode of transportation with various benefits, such as reducing reliance on single-occupancy automobiles, boosting public health, lowering pollution levels, and enhancing accessibility. Accordingly, proximity to BSS stations can be factored into residential property values. Thus, this research attempts to explore whether (1) proximity to BSS was positively associated with residential property prices in Portland, Oregon, (2) proximity to BSS and public transportation modes showed synergistic effects on the values, and (3) the magnitude of the BSS premium intensified over time. The findings of spatial hedonic models indicate (1) a premium for proximity to BSS in both single-family and multi-family housing markets with varying magnitudes, (2) synergetic effects between BSS and public transportation modes, including light rail transit, streetcar, and bus, and (3) an unchanged premium for BSS between 2016 and 2019 with a few exceptions. The findings expand discussions around transportation-induced property value premium and offer policy implications.

An examination of the influence of urban violence on rental value of residential property in Kaduna metropolis

PurposeThe paper aims to examine the influence of urban violence on residential property rental value in Kaduna metropolis. This is motivated by the spate of insurgency and the attendant destructions of land and properties in the past few years in the study area.Design/methodology/approachThis paper adopted a survey of key sites of urban violence and also a total enumeration of all the 67-estate surveying and valuation firms in the study area to elicit from them vital information on trends on rental from 2011 to 2019. The data obtained were analyzed using both descriptive and inferential methods of statistical analysis.FindingsThe result of this study revealed that among other sources of urban violence, violence fueled by ethnic affiliations/convictions is the only significant factor that influenced rental value of residential property in the study area. The regression analysis shows that ethnic violence accounted for 21.6% of the variability observed in residential property rental value over the period of study. Furthermore, the correlation result showed that ethnic violence is negatively correlated (−0.458) and significantly related to residential property rental value.Practical implicationsThis study concluded that the emergence of urban violence in Kaduna metropolis contributed to a fall in the rental value of residential property in the study area. This study thus suggested policy directions that could engender harmonious coexistence among different ethnic groups in the study area.Originality/valueThis study is expected to enhance improvement in residential property rental value in Kaduna metropolis through increase assurance to security of lives and property.

Intermediate Effect of the COVID-19 Pandemic on Prices of Housing near Light Rail Transit: A Case Study of the Portland Metropolitan Area

This study explored the dynamics of a residential property value premium for proximity to a light rail transit (LRT) station in the intermediate term (roughly two years) since the pandemic. We applied a longitudinal quasi-experimental design using repeat sales data from the Portland Metropolitan Area, Oregon. Our results indicate that the effect of the pandemic on prices of housing near LRT stations differs between single-family and multi-family markets. Since the pandemic outbreak, there has been no statically significant difference in the price appreciation between single-family (SF) housing within an LRT service area and otherwise similar SF homes; however, for multi-family (MF) homes, those within an LRT service area have experienced a 3.0% lower price appreciation rate than MFs outside such areas with similar characteristics. Our findings help better highlight the impact of the pandemic on the real estate market and can inform discussions about longer-term changes in post-COVID cities and their planning.

Drivers behind the accuracy of self-reported home valuations: evidence from an emerging economy

PurposeThis paper aims to explore the drivers behind the accuracy of self-reported home valuations in the Warsaw (Poland) housing market.Design/methodology/approachIn order to achieve the research goal, firstly, unique data on subjective residential property values estimated by their owners were compared with market-justified ones. The latter was calculated using geographically weighted regression, which allowed for taking into account spatially heterogeneous buyers' housing preferences. An ordered logit model was then used to identify the factors influencing the probability of the occurrence of bias towards over or undervaluation.FindingsThe results of the study revealed that, on average, homeowners overvalued their properties by only 1.94%, and the fraction of interviewees estimating their properties accurately ranges from 20% to 68%, depending on the size of the margin of error adopted. The drivers of the valuation bias variation were the physical, locational and neighbourhood attributes of the property as well as the personal characteristics of the respondents, for which their age and employment situation played a key role.Originality/valueIn contrast to previous studies, this is the first to examine drivers behind the accuracy of self-reported home valuations in a Central and Eastern Europe country. In addition, this work is the first to consider heterogeneous housing preferences when calculating objective property values.

Residential Buildings’ Real Estate Values Linked to Summer Surface Thermal Anomaly Patterns and Urban Features: A Florence (Italy) Case Study

Climate-change-related extreme events impact ecosystems, people, economy, and infrastructures, with important consequences on the real estate market as well. This study aims to investigate the variation of residential buildings’ real estate values in a historic Italian city in relation to the summer surface thermal anomaly pattern and urban features surrounding buildings. Open data from remote sensing products and the national database of the Revenue Agency of Italy were used. Real estate values of residential buildings were spatially analyzed in four urban belts, and the association with daytime summer surface hot- and cool-spot zones was studied through odds ratio (OR) statistic. Urban features (impervious area, tree cover, grassland area, and water body) surrounding residential buildings with different real estate values were also analyzed. Considering the whole Florentine municipality, 13.0% of residential buildings fell into hot-spot zones (only 0.6% into cool-spot ones), characterized by very low tree cover surfaces (generally <1%), most of which were in the central belt (37% of all buildings in central belt). Almost 10% of these buildings belonged to the highest market value class revealing a positive association (OR = 1.53) with hot-spot zones. This study provides useful information to plan targeted building interventions to avoid a probable decrease of the value of residential properties in high heat-related risk areas.

Associations between neighborhood built environment, residential property values, and adult BMI change: The Seattle Obesity Study III

ObjectiveTo examine associations between neighborhood built environment (BE) variables, residential property values, and longitudinal 1- and 2-year changes in body mass index (BMI). MethodsThe Seattle Obesity Study III was a prospective cohort study of adults with geocoded residential addresses, conducted in King, Pierce, and Yakima Counties in Washington State. Measured heights and weights were obtained at baseline (n = 879), year 1 (n = 727), and year 2 (n = 679). Tax parcel residential property values served as proxies for individual socioeconomic status. Residential unit and road intersection density were captured using Euclidean-based SmartMaps at 800 m buffers. Counts of supermarket (0 versus. 1+) and fast-food restaurant availability (0, 1–3, 4+) were measured using network based SmartMaps at 1600 m buffers. Density measures and residential property values were categorized into tertiles. Linear mixed-effects models tested whether baseline BE variables and property values were associated with differential changes in BMI at year 1 or year 2, adjusting for age, gender, race/ethnicity, education, home ownership, and county of residence. These associations were then tested for potential disparities by age group, gender, race/ethnicity, and education. ResultsRoad intersection density, access to food sources, and residential property values were inversely associated with BMI at baseline. At year 1, participants in the 3rd tertile of density metrics and with 4+ fast-food restaurants nearby showed less BMI gain compared to those in the 1st tertile or with 0 restaurants. At year 2, higher residential property values were predictive of lower BMI gain. There was evidence of differential associations by age group, gender, and education but not race/ethnicity. ConclusionInverse associations between BE metrics and residential property values at baseline demonstrated mixed associations with 1- and 2-year BMI change. More work is needed to understand how individual-level sociodemographic factors moderate associations between the BE, property values, and BMI change.

Impact of Light Rail: A Spatial-Temporal Assessment of Neighboring Residential Property Values in Los Angeles

This research examines the impact of light rail stations on housing market by analyzing the 1993–2013 single-family home sale transactions in the City of Los Angeles, California. The study period was divided into seven 3-year periods, and the area was divided into three different groups by income level: low-, middle-, and high-income. The result shows that the opening of light railways increased property values in general. It also revealed the differentiated impacts by neighborhood income levels.

Property values and cyanobacterial algal blooms: Evidence from satellite monitoring of Inland Lakes

We examine how the frequency of cyanobacterial harmful algal blooms (cyanoHABs) generates economic costs through the mechanism of residential property values. We assemble nearly two decades worth of nationwide data on property sales near US inland lakes along as well as satellite-derived measures of the annual frequency of cyanoHABs in over 2000 large lakes during the years 2008–2011. We combine these data sources to estimate broad scale hedonic property models to recover the marginal willingness to pay to reduce the frequency of cyanobacterial blooms in seven climate regions across the United States. We find heterogeneity in the marginal cost of cyanoHABs, with a 10-percentage point increase in annual occurrence reducing average home values for near-shore properties by 3.5% in the Upper Midwest, 3.8% in the South, 3.3% in the Southeast, and 4.3% in the Northeast. We find null or inconclusive results for other regions. We use our estimates to illustrate the household-, lake-, and regional-level impacts of counterfactual changes in the frequency of cyanoHABs.

The Impact of Brownfields on Residential Property Values in Post-Industrial Communities: A Study from the Eastern Part of the Czech Republic

Dilapidated, neglected, or abandoned sites and buildings (so-called brownfields) are frequently neither visually attractive nor aesthetically valuable. Indeed, neglected brownfields contribute to the emergence of both objective and subjective barriers to the social, economic, and environmental development of communities. We also know that the occurrence of decayed brownfields affect the prices of residential housing in their vicinity. In our paper, we seek to better understand the impact of brownfields on the perceived value of neighbouring properties. We are also keen to shed more light on the factors behind the allegedly undesirable impact of brownfields on property values. Our research is based primarily on data obtained from a survey of 1,152 respondents in ten municipalities situated at the eastern part of the Czech Republic, where neglected brownfields frequently occur. The findings are complemented by an analysis of sales of residential properties located in proximity to brownfield sites, to further confirm our preliminary survey results. The results confirmed that neglected brownfields tend to negatively affect the value of neighbouring residential properties. Our results also signal that the concentration of socially unacceptable behaviour is considered a key issue for distorting property prices around brownfields. Our analyses have confirmed that distance from a particular brownfield is one of the factors significantly influencing property prices. We claim that neglected brownfields create negative externalities that require public sector interventions and better planning. We urgently need more systematic support for brownfield regeneration to improve the quality of life of residents in affected communities.

The distributional incidence of wildfire hazard in the western United States

Increases in wildfire activity in the western United States in recent years have led to significant property loss in wildland-urban interface areas, raising difficult questions for policymakers regarding mitigation of wildfire damages and how mitigation costs should be distributed. Yet in spite of increased attention to the distribution of environmental and climate-related risks across socioeconomic groups, and its relevance to current wildfire-related policy debates, the distributional incidence of wildfire hazard is not well understood. This paper fills this gap by combining property-level data on locations and values of residential properties, demographics, wildfire hazard, and historical wildfire perimeters. We find that there is substantial heterogeneity within high wildfire hazard areas, but that high wildfire hazard and impact from recent wildfires (2011–2018) have disproportionately been borne by high-income, white, and older residents, and by owners of high-value properties; properties in the tenth decile of market value by county are on average 70% more likely to be in high wildfire hazard areas than median value properties. However, because many high-value high wildfire hazard properties are concentrated in high density areas, most of the high wildfire hazard area in the western US is sparsely populated and comprises mainly relatively low-value properties.

World heritage designation and residential property values: the case of Old Rauma, Finland

PurposeThe purpose of this paper is to evaluate the impact of beneficial externality generated by the World Heritage List (WHL) on residential property values in order to offer new insights into heritage discourses.Design/methodology/approachThe study uses the hedonic price model to estimate empirically the difference in prices for residential properties located in the Old Rauma World Heritage. The study uses residential sales transaction data from the City of Rauma from January 2005 to September 2012 drawn from an online database called KVKL Hintaseurantapalvelu managed by the Central Federation of Finnish Real Estate Agencies.FindingsThe research results indicate a positive, but insignificant, relationship between the property sale prices (euros/sqm) and heritage designation. However, the total sale prices are higher in Old Rauma as the properties are significantly larger in Old Rauma compared to other properties in Rauma.Originality/valueStudies in heritage economics have assessed the influence of the property market on heritage listing and designation at either the national level, the local level or a mix of national/local levels. This paper contributes to the literature by analysing the impact of a United Nations Educational, Scientific and Cultural Organisation (UNESCO) world heritage designation on residential property values. UNESCO is the leading global institution which deals with the protection of heritage sites that transcend national and local boundaries.

DOES PROXIMITY TO WATER BODIES IMPACTS MARKET VALUES OF RESIDENTIAL PROPERTIES? CASE STUDY OF DIYAWANNAWA LAKE AREA

This study examined the impact of water bodies with a scenic view on residential property values around Diyawannawa lake located within Sri Jayewardenepura Kotte Municipal council (a suburban area of Colombo district). The study employed both primary (structural and environmental data related to properties, different types of benefits generated from waterbodies) and secondary data (market evidence) whilst the data analysis included content analysis and a regression analysis (hedonic pricing model). Water bodies with scenic views generate multiple utilities for residents such as observing nature, relaxation, and playing, pleasant views, appreciation of colour and sounds, relationships with family members and neighbors, a place to exercise and cycling, stress relief likewise. According to the study, between 2019-2020, a residential property with a scenic view of 600 or more to Diyawannawa Lake had a premium market value of Rs. 803,433.05 compared to other properties. Furthermore, the residential properties one meter away from such water body showed a decrease in market value of Rs. 23049.65. These findings will raise awareness on the benefits of water bodies with scenic views and it will lead to greater acceptance by residents, developers, local authorities to invest and protect them, which could contribute to overcoming one of the barriers to maintaining such water bodies in good condition.
 Keywords: water bodies; residential property; market value

Assessment of the relationship between community services and taxpayers’ willingness to pay residential property tax in Lagos metropolis

Property tax which is considered a suitable local source of revenue is facing serious threats as a result of the present state of Nigeria community services. This study therefore assessed the condition of community services in Lagos metropolis with the view to determining taxpayers’ willingness to pay (WTP) residential property tax. Primary data was used for the study. The data were sourced through the use of questionnaire administered to the users of the residential properties that have been assessed for rating purposes in the study area. 4026, questionnaires were administered to Residential property owners. While 2181(54.17%), were returned and analysed. The community service condition index (CSI), an index number that indicates the current condition of the services measured in relation to its ideal ‘Perfect’ condition, adopted from Australian Association of Higher Education facilities officers (2010) was used to rate the community service condition in the study area. The result revealed that there is direct relationship between improvement in the condition of community services and taxpayers’ willingness to pay residential property tax. The study concludes that Lagos state government has the potential to generate the largest share of its revenue from property tax, if judiciously spend the revenue for the provision and upgrading of the existing community services in the study area. The study therefore recommends that Lagos state government should declare state of emergency in the provision of community services, this will improve rental value of residential properties in the area, thus increases taxpayers’ willingness to pay residential property tax.

Price recovery after the flood: risk to residential property values from climate change‐related flooding*

We take advantage of a combination of a severe weather event from 3 to 4 June 2015 and a local policy, to investigate the housing market response to climate change‐related flooding hazard. The study focuses on a residential area in a low‐lying coastal suburb of Dunedin, New Zealand, where the groundwater level is shallow and close to sea level. An unusually heavy rain event in June 2015 resulted in flooding of a significant portion of land in especially low‐lying areas. The city council responded by reviewing processes for storm‐water management and by imposing minimum‐floor‐level [MFL] requirements on new construction in the low‐lying areas previously identified as at risk of flooding. Applying a ‘diff‐in‐diff‐in‐diff’ strategy in hedonic regression analyses, we find that houses in the MFL zone sell for a discount of about 5 per cent prior to the flood. This discount briefly tripled in the area that flooded, but disappeared within 15 months, indicating either very short memory among homebuyers or no long‐run change in perception of hazard.

Do Wind Hazard Mitigation Programs Affect Home Sales Values?

The FORTIFIED Home Program is a voluntary construction and re-roofing program designed to strengthen residential properties to withstand damages from severe weather events. The FORTIFIED designation framework can accommodate sustainable new home construction and existing property retrofitting efforts. Applying a two-state utility framework to Zillow’s ZTRAX and IBHS’s FORTIFIED designation data, we estimate the effect of a FORTIFIED Home designation on residential property values using sales transactions for coastal Alabama from 2011 to 2021. We add to the growing body of literature examining the relationship between eco-friendly construction applications and home prices by deriving the contribution of a FORTIFIED designation to enhanced risk reduction and lowered insurance costs. The results of our full- and nearest-neighbor-matched sample design suggest a likely price premium significance on the order of 2-4% for FORTIFIED homes.

Leveraging Main Street as a Real Estate Amenity: Downtown Revitalization and Residential Property Values

As part of their efforts to reverse the effects of twentieth-century downtown disinvestment and automobile-oriented development, stakeholders in small towns across the United States look for viable means of restoring the vitality and character of their historic business districts. In this paper, I evaluate a widely adopted downtown revitalization strategy—the Main Street Program—by measuring its influence on the local housing market. I find that home sale prices are higher for residential properties sold in program-participating communities, and I observe an additional sale price premium for homes located in closer proximity to downtown districts with an active Main Street Program.

Impacts of bus rapid transit (BRT) on residential property values: A comparative analysis of 11 US BRT systems

Bus rapid transit (BRT) is growing in popularity as a lower-cost alternative to light rail transit. Although the impacts of rail transportation on residential property values is well-explored, the impact of BRT on property values remains less well-understood, particularly in the United States where BRT infrastructure is more heterogeneous than the rest of the world. This paper addresses this gap by evaluating and comparing the before-and-after effect of 11 BRT systems on nearby property values in ten metropolitan areas across the United States. We used a quasi-experimental approach and hedonic spatial error models with propensity score matching to measure change in residential property transaction prices within walking distance of a BRT station. Overall model results show a mix of appreciation, depreciation, and no change in residential properties value across different BRT systems. Multi-family properties nearby BRTs with on-street dedicated lanes generally experienced the most appreciation while single-family properties around off-street busway systems experienced depreciation. BRT-lite systems without dedicated lanes associate with property appreciation in relatively dense and congested metropolitan areas with developed transit networks and high ridership. Our model results emphasize the ability of BRT to improve transit accessibility in these regions and to provide an attractive alternative to driving. Furthermore, the lack of property appreciation around busways indicates these systems may not provide nearby residents with an amenity bonus greater than its nuisance effects. Our study informs stakeholders and public officials about the broad effects of BRT on land values and invites researchers to continue investigating the role of walkability, nuisance effects, and individual BRT amenities on residential property values.

On Place Safety

AbstractFor a long time, social factors have been identified as a set of crucial determinants of residential location choice and property value. Here, safety and security issues constitute a significant issue. Inhabitants are traditionally concerned about their neighborhoods and housing locations, and, considering current problems in big Western cities, this concern is by no means lessening. The study presents a social innovation for assisting the search for safe housing environments. A list of quantifiable key features regarding negative externalities and actual criminality provides the basis for constructing a checklist for the comparison of safe places within a city, or comparing cities with respect to their safety for housing occupants, investors, developers and other stakeholders. The controversial nature of the argumentation notwithstanding, this method is suggested to prove valuable in circumstances marred by increasing social hazards and turmoil.

Performance of residential property investment returns in an emerging metropolitan area. The awareness, use and gender inequality

This study assessed the performance of residential property investment returns. To ascertain the awareness, use, and gender inequality in the usage of residential performance data by investors. The paper focuses on risk-return features of the tenement, two and three-bedroom property for investment purposes, in order to improve the understanding of the property market mechanism in Kano metropolis, Nigeria. Unraveling empirically risk-return features of residential property in the metropolitan area is unclear hence the speculative decision on residential investment is widespread. Quantitative research was employed using a questionnaire survey to obtain primary data on annual rental and capital values of residential properties from branch managers of estate firms. This data was afterward transformed into total returns and put to Phillip-Perron unit root test (stationarity). The study utilized both descriptive and inferential statistical techniques for analysis. Findings from the study show that total returns for residential property range from 6.99% to 14.44% with risk-return ranging from 20.92% to 51.54% within the property market, Badawa/GRA property has the lowest risk features hence the most secured location for residential investment, the paper also unveils that gender inequity in the usage of residential property investment performance data is high against women. It is on these findings that the study recommended Badawi/GRA property market for risk-averse investors, persistent sensitization program and incentives (reduction in service charge) targeting women in the property market is encouraged.

Assessing the Impact of Aviation Noise on Housing Prices Using New Estimated Noise Value: The Case of Taiwan Taoyuan International Airport

Aviation noise at airports has a significant impact on nearby residents’ quality of life and residential property values. This study evaluated the impact of aviation noise based on house prices by using three different hedonic price models. Two novel independent noise variables, the estimated aviation noise value and noise reward fund are proposed for constructing effective hedonic price models. The real data of real estate transactions from the region defined by the Taoyuan International Airport’s 60–64 dB day-night average sound level (Ldn) and ≥65 dB Ldn noise contours are adopted as empirical data. Empirical results showed that the double-log hedonic price model with the proposed estimated aviation noise variables is the most suitable model for this study. Based on the double-log model, this study found that aviation noise has a significant negative impact on house prices in both noise contour areas of 60–64 dB Ldn and ≥65 dB Ldn. The rate of decline in house prices is approximately USD 2356.02/dB and USD 3622.78/dB in the 60–64 dB Ldn and ≥65 dB Ldn contour areas, respectively. Our results also showed that the noise reward fund had no significant impact on the house prices which implies that the current subsidy method has been maintained at an appropriate level for Taoyuan International Airport.