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Modeling Spatial Dimensions of Housing Prices in Milwaukee, WI

Author

Listed:
  • Danlin Yu

    (Department of Earth and Environmental Studies, Montclair State University, Montclair, NJ 07043, USA)

  • Yehua Dennis Wei

    (Department of Geography and Urban Studies Program, University of Wisconsin—Milwaukee, Milwaukee, WI 53201, USA)

  • Changshan Wu

    (Department of Geography, University of Wisconsin—Milwaukee, Milwaukee, WI 53201, USA)

Abstract

In this study we investigate spatial dimensions of housing-market dynamics in the City of Milwaukee by modeling the determinants of housing prices. From the 2003 Master Property data file of the city, two sets of owner-occupied single-family houses were randomly selected (one to construct the models, and the other to rest the models). Besides conventional housing attributes, remote-sensing information, in particular the fractions of soil and impervious surface representing degraded neighborhood environment conditions, is added to improve the model. Spatial regression and geographically weighted regression approaches are employed to examine spatial dependence and heterogeneity. Results reveal that these spatial models tend to perform better, especially in terms of model performance and predictive accuracy, than the ordinary least squares estimates.

Suggested Citation

  • Danlin Yu & Yehua Dennis Wei & Changshan Wu, 2007. "Modeling Spatial Dimensions of Housing Prices in Milwaukee, WI," Environment and Planning B, , vol. 34(6), pages 1085-1102, December.
    • Handle: RePEc:sae:envirb:v:34:y:2007:i:6:p:1085-1102
    DOI: 10.1068/b32119
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    References listed on IDEAS

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    3. Timothy J. Fik & David C. Ling & Gordon F. Mulligan, 2003. "Modeling Spatial Variation in Housing Prices: A Variable Interaction Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 31(4), pages 623-646, December.
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    5. William M. Bowen & Brian A. Mikelbank & Dean M. Prestegaard, 2001. "Theoretical and Empirical Considerations Regarding Space in Hedonic Housing Price Model Applications," Growth and Change, Wiley Blackwell, vol. 32(4), pages 466-490.
    6. Mahlon R. Straszheim, 1975. "An Econometric Analysis of the Urban Housing Market," NBER Books, National Bureau of Economic Research, Inc, number stra75-1, May.
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