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Regional heterogeneity in age-related housing depreciation rates
[Regionale Heterogenität altersbedingter Wertminderungen von Wohnimmobilien]

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  • Sören Gröbel

    () (Westfälische Wilhelms-Universität Münster)

Abstract

This paper analyses the regional variation of age-related depreciation rates for housing: firstly, using observations of single-family house prices, our analysis estimates housing market-specific age-cohort depreciation rates, while taking into account the heterogeneity in attributes, location, and state of maintenance. Secondly, we examine whether the derived depreciation rates correlate with determinants of the regional supply- and demand-side. Considering the durability of the housing stock and substitution effects in housing demand, we find that a rise in excess supply will not only lead to declining house prices in the aggregate, but also to a widening of relative house price differentials among houses at different ages.

Suggested Citation

  • Sören Gröbel, 2018. "Regional heterogeneity in age-related housing depreciation rates [Regionale Heterogenität altersbedingter Wertminderungen von Wohnimmobilien]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 38(2), pages 219-254, October.
  • Handle: RePEc:spr:jahrfr:v:38:y:2018:i:2:d:10.1007_s10037-018-0125-3
    DOI: 10.1007/s10037-018-0125-3
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    More about this item

    Keywords

    Age-related housing depreciation; Hedonic pricing model; Regional housing markets; Germany; Single-family houses;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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