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Does better accessibility always mean higher house prices?

Author

Listed:
  • Xiang Liu
  • Xiaohong Chen
  • Scott Orford
  • Mingshu Tian
  • Guojian Zou

Abstract

Numerous studies have explored the correlations between house prices and spatial accessibility, but few have delved into the nonlinearities between both. This study uses Cardiff (UK) as a case study and applies interpretable machine learning algorithms, eXtreme Gradient Boosting (XGBoost) and SHapley Additive exPlanations (SHAP), to estimate the nonlinear effects of geometric locational accessibility and street network accessibility on house prices. The findings suggest (1) proximity to the CBD, typically the major determinant of land values in hedonic house price models, does not continuously yield higher prices; (2) street closeness centrality, a network-modelling approach to measuring accessibility, exhibits a more generalised pattern with house prices compared proximity to the CBD regardless of analytical spatial scales. The findings challenge the generalizability of Alonso’s bid-rent theory in accurately portraying the relationship between accessibility and house prices in specific urban contexts, highlighting the importance of re-evaluating classical urban theories in different city contexts using novel measures and modelling techniques.

Suggested Citation

  • Xiang Liu & Xiaohong Chen & Scott Orford & Mingshu Tian & Guojian Zou, 2024. "Does better accessibility always mean higher house prices?," Environment and Planning B, , vol. 51(9), pages 2179-2195, November.
    • Handle: RePEc:sae:envirb:v:51:y:2024:i:9:p:2179-2195
    DOI: 10.1177/23998083241242212
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    References listed on IDEAS

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