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Modelling Spatial Structures in Local Housing Market Dynamics: A Multilevel Perspective

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  • Scott Orford

    (Department of City and Regional Planning, Cardiff University, Glamorgan Building, King Edward VAvenue, Cardiff, CF10 3WA, UK, orfords@cardiff.ac.uk)

Abstract

There has been a long history of research into the development and estimation of hedonic house price models. There is, however, a discrepancy between the empirical and theoretical approaches to this research. A major issue lies in the integration of the conceptual and theoretical models of local housing markets with the context-insensitive nature of the standard hedonic model specification. This paper explores this inconsistency by using multilevel modelling to move towards a more empirically and conceptually appealing specification of the hedonic house price model. It uses price data from Cardiff to investigate how a multilevel approach can explicitly incorporate the spatial structures of housing market dynamics and the ad hoc nature of the valuation process. The paper concludes that successful empirical analysis depends upon a clear theoretical understanding of the processes under investigation.

Suggested Citation

  • Scott Orford, 2000. "Modelling Spatial Structures in Local Housing Market Dynamics: A Multilevel Perspective," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1643-1671, August.
  • Handle: RePEc:sae:urbstu:v:37:y:2000:i:9:p:1643-1671
    DOI: 10.1080/00420980020080301
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    References listed on IDEAS

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    Cited by:

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    2. Eric Nazindigouba KERE & Johanna CHOUMERT & Amandine Loyal LARÉ-DONDARINI, 2014. "The impact of water and sanitation access on housing values: The case of Dapaong, Togo," Working Papers 201403, CERDI.
    3. Chun-Chang Lee & Hsueh-Ling Fan, 2016. "The Impact of Administrative Characteristics and Residential Types on Income Capitalization Rates in Taipei, Taiwan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(10), pages 602-619, October.
    4. Yang, Yang & Mueller, Noah J. & Croes, Robertico R., 2016. "Market accessibility and hotel prices in the Caribbean: The moderating effect of quality-signaling factors," Tourism Management, Elsevier, vol. 56(C), pages 40-51.
    5. Nadia Fiorino & Nicola Pontarollo & Roberto Ricciuti, 2016. "Voter Turnout in European Parliament Elections: A Spatial Analysis," CESifo Working Paper Series 5910, CESifo.
    6. Mark Skidmore & Gary Anderson & Mark Eiswerth, 2011. "The Child Adoption Marketplace: Parental Preferences and Adoption Outcomes," CESifo Working Paper Series 3674, CESifo.
    7. Chasco, Coro & Le Gallo, Julie & López, Fernando A., 2018. "A scan test for spatial groupwise heteroscedasticity in cross-sectional models with an application on houses prices in Madrid," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 226-238.
    8. Nadia Fiorino & Nicola Pontarollo & Roberto Ricciuti, 2017. "Supra National, National and Regional Dimensions of Voter Turnout in European Parliament Elections," JRC Research Reports JRC108755, Joint Research Centre (Seville site).
    9. Riccardo, Borgoni & Alessandra, Michelangeli & Nicola, Pontarollo, 2016. "How Does a City Benefit from Culture? Evidence from Milan," Working Papers 335, University of Milano-Bicocca, Department of Economics, revised 16 May 2016.
    10. Fernando BRUNA & Isabel NEIRA & Marta PORTELA, 2019. "Horizontal And Vertical Contexts On Europeans’ Well-Being," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 19(2), pages 37-56.
    11. Yonghua Zou, 2015. "Re-examining the Neighborhood Distribution of Higher Priced Mortgage Lending: Global versus Local Methods," Growth and Change, Wiley Blackwell, vol. 46(4), pages 654-674, December.

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