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The Impact of Changing Lake Levels on Property Values: A Hedonic Model of Lake Thurmond

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  • Lori Dickes

    (Clemson University)

  • Elizabeth Crouch

    (University of South Carolina)

Abstract

This study uses hedonic pricing models to examine the relationship between lake levels and property values for properties adjacent to Lake Thurmond. Lake Thurmond is located along the Savannah River Basin, bordering Georgia and South Carolina. Of the 1,030 properties from 2000-2009 for which data was reliable and available, 388 were lake front homes. The model of the effect of lake level on sales prices also includes home characteristics, home condition variables, lake attributes, and macroeconomic control variables. Results reveal a statistically significant change in sales price when the lake is closer to full pool. Results confirm that declining Lake Thurmond water levels have an impact on real estate values within some ranges below full pool. As climate variability places increasing pressure on communities, future research would benefit from further exploration into the relationship between economic activity and changing lake levels.

Suggested Citation

  • Lori Dickes & Elizabeth Crouch, 2015. "The Impact of Changing Lake Levels on Property Values: A Hedonic Model of Lake Thurmond," The Review of Regional Studies, Southern Regional Science Association, vol. 45(3), pages 221-235, Winter.
    • Handle: RePEc:rre:publsh:v45:y:2015:i:3:p:221-235
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    1. Ansgar Belke & Jonas Keil, 2018. "Fundamental Determinants of Real Estate Prices: A Panel Study of German Regions," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(1), pages 25-45, February.

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    More about this item

    Keywords

    housing prices; hedonic model; lake levels;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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