Factors Affecting Residential Property Values in a Small Historic Canadian University Town
AbstractThe town of Wolfville, Nova Scotia is a small historic community, economically dominated by Acadia University. It is located on the north slope of a ridge, affording views of the Minas Basin, at the eastern end of the Bay of Fundy. The upper boundary of the town is a major provincial highway. A set of sound level observations was used to generate average and peak sound level profiles for the town. Average and peak sound level, as well as presence of a view were included in a hedonic regression of property values. View and average sound level were not statistically related to home price. However, peak sound level is priced, with a one decibel increase reducing the average house price by about two percent. Beyond conventional variables such as age and living space, the zoning classification of the property was found to be highly significant, with homes zoned for single family residential only commanding the highest price. Given the high population of student tenants in Wolfville, tenants unlikely to live in areas zoned single family residential, these results suggests that rental externalities - either due to student tenants or landlord practices - are having a strong negative impact on property values.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 6145.
Date of creation: 10 Jan 2007
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Hedonic regression; noise pollution; zoning; segregation;
Find related papers by JEL classification:
- R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Housing Supply and Markets
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
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