IDEAS home Printed from https://ideas.repec.org/a/taf/rjerxx/v41y2019i2p249-284.html

Property Renovations and Their Impact on House Price Index Construction

Author

Listed:
  • Alexander N. Bogin
  • William M. Doerner

Abstract

This paper provides the first wide-scale report of property renovation bias in repeat-sales house price indices across a multitude of U.S. geographies. In local markets, omitting information on property improvements can bias index estimates in a predictable manner and can distort valuations by as much as 15% in the central districts of large cities. This systematic variation in bias is partially a function of the disparate concentration of renovation activity with property improvements occurring more frequently in denser areas. The distortionary effect tends to decline outside of downtown areas and becomes negligible in smaller cities.

Suggested Citation

  • Alexander N. Bogin & William M. Doerner, 2019. "Property Renovations and Their Impact on House Price Index Construction," Journal of Real Estate Research, Taylor & Francis Journals, vol. 41(2), pages 249-284, April.
    • Handle: RePEc:taf:rjerxx:v:41:y:2019:i:2:p:249-284
    DOI: 10.1080/10835547.2019.12091526
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2019.12091526
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2019.12091526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mari O. Mamre & Dag Einar Sommervoll, 2024. "Coming of Age: Renovation Premiums in Housing Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 69(2), pages 307-342, August.
    2. Adam D. Nowak & Patrick S. Smith, 2020. "Quality-Adjusted House Price Indexes," American Economic Review: Insights, American Economic Association, vol. 2(3), pages 339-356, September.

    More about this item

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjerxx:v:41:y:2019:i:2:p:249-284. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjer20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.