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Architectural Factors Influencing a Housing Market Value: A Theoretical Framework

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  • Skripkiūnas Tomas

    (1 School of Economics and Business, Kaunas University of Technology, K. Donelaičio g. 73, Kaunas 44249, Lithuania)

  • Navickas Valentinas

    (1 School of Economics and Business, Kaunas University of Technology, K. Donelaičio g. 73, Kaunas 44249, Lithuania)

Abstract

A housing price, not considering its change over time, is widely determined by hedonic properties. This is common in literature; however, there is a significant part of a price, the so-called unexplained variance, that is not captured by hedonic models. The scientific problem of this research is how to classify and visualize architectural factors that might have an influence on the market value of a dwelling. The object of the research are architectural factors in a housing market value analysis and the aim of research is to describe the theoretical framework that defines the structure and scope of architectural variables influencing a housing market value. Not all architectural factors described in the literature review are equal in terms of scale, measurability, public or private context, aesthetic or functional priority. A systematic approach would be to classify architectural factors as a matrix of built environment properties. Two orthogonal dimensions can be identified: architectural factors spanning from non-design (functional, utilitarian) to design (abstract, unexplained) and factors spanning from architectural design (private) to urban design (public). A multidimensional and complex system of architectural variables influencing a housing market value exists. Understanding this system is crucial for a housing development to succeed.

Suggested Citation

  • Skripkiūnas Tomas & Navickas Valentinas, 2023. "Architectural Factors Influencing a Housing Market Value: A Theoretical Framework," Real Estate Management and Valuation, Sciendo, vol. 31(1), pages 25-35, March.
    • Handle: RePEc:vrs:remava:v:31:y:2023:i:1:p:25-35:n:1
    DOI: 10.2478/remav-2023-0003
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    References listed on IDEAS

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    More about this item

    Keywords

    housing market value; architectural factors; hedonic models; economic value;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory

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