A Neural Network Analysis of the Effect of Age on Housing Values
AbstractEmpirical studies using multiple regression find the value of a residential property declines with its age. Because these results confirm the fact of physical deterioration of a house over time, little attention is paid to the statistical technique's inherent shortcomings. Accordingly, this paper uses a neural network, which is able to overcome multiple regression's methodological problems, to re-examine the effect of age on a house's value. We find that a negative relationship of value to age holds only for the first sixteen to twenty years of the life of a house. Then, not only does the decline in value stop, but a house actually starts to experience appreciation related, in part, to its lot size.
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Bibliographic InfoArticle provided by American Real Estate Society in its journal Journal of Real Estate Research.
Volume (Year): 8 (1993)
Issue (Month): 2 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
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- André Decoster & Kris De Swerdt, 2005.
"Why and How to Construct a Genuine Belgian Price Index of House Sales,"
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- A. Decoster & K. De Swerdt, 2006. "Why and How to Construct a Genuine Belgian Price Index of House Sales," Review of Business and Economics, Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen, vol. 0(2), pages 309-330.
- Decoster, André & De Swerdt, Kris, 2006. "Why and how to construct a genuine Belgian price index for house sales?," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/119722, Katholieke Universiteit Leuven.
- Decoster, André & De Swerdt, Kris, 2005. "Why and how to construct a genuine Belgian price index for house sales?," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/119335, Katholieke Universiteit Leuven.
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