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Hedonic Analysis Over Time And Space: The Case Of House Prices And Traffic Noise

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  • Aaron Swoboda
  • Tsegaye Nega
  • Maxwell Timm

Abstract

type="main"> One consequence of the expanding road network and its associated traffic is increased levels of traffic noise. While the hedonic literature has consistently found a negative relationship between real estate prices and noise levels, research in the United States has typically relied on crude measures of traffic noise. Here, we reduce the measurement error of traffic noise exposure through a detailed model of noise propagation over the landscape. We then estimate the hedonic relationship between noise and single family house prices using over 40,000 transactions throughout the St. Paul, Minnesota, urban area from 2005 to 2010. We implement spatially and temporally flexible local regression techniques and find significant nonstationarity in the hedonic function over time and space.

Suggested Citation

  • Aaron Swoboda & Tsegaye Nega & Maxwell Timm, 2015. "Hedonic Analysis Over Time And Space: The Case Of House Prices And Traffic Noise," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 644-670, September.
  • Handle: RePEc:bla:jregsc:v:55:y:2015:i:4:p:644-670
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    File URL: http://hdl.handle.net/10.1111/jors.12187
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    References listed on IDEAS

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    1. Sunding, David L. & Swoboda, Aaron M., 2010. "Hedonic analysis with locally weighted regression: An application to the shadow cost of housing regulation in Southern California," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 550-573, November.
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    Cited by:

    1. Michele Aquaro & Natalia Bailey & M. Hashem Pesaran, 2019. "Estimation and inference for spatial models with heterogeneous coefficients: an application to U.S. house prices," CESifo Working Paper Series 7542, CESifo.
    2. Agnieszka Szczepańska & Adam Senetra & Monika Wasilewicz-Pszczółkowska, 2020. "The Influence of Traffic Noise on Apartment Prices on the Example of a European Urban Agglomeration," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-14, January.
    3. Cohen, Jeffrey P. & Coughlin, Cletus C. & Crews, Jonas, 2019. "Traffic noise in Georgia: Sound levels and inequality," Journal of Housing Economics, Elsevier, vol. 44(C), pages 150-165.
    4. Cheng Keat Tang, 2016. "Traffic Externalities and Housing Prices: Evidence from the London Congestion Charge," SERC Discussion Papers 0205, Spatial Economics Research Centre, LSE.
    5. Kopsch, Fredrik, 2016. "The cost of aircraft noise – Does it differ from road noise? A meta-analysis," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 138-142.

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