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Spatial Fragmentation and the Value of Residential Housing

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  • Todd H. Kuethe

Abstract

This study examines the impacts of spatial fragmentation and land use diversity on single-family residential real estate values. Through hedonic price analysis, we estimate the implicit price effects of spatial fragmentation and neighborhood land use diversity in the city of Milwaukee, Wisconsin. Spatial econometric estimates suggest that house prices are negatively impacted by spatial fragmentation at low levels of fragmentation, yet there is a positive price relationship at high levels of fragmentation. The results also suggest that house prices do not share a statistically significant relationship with land use diversity.

Suggested Citation

  • Todd H. Kuethe, 2012. "Spatial Fragmentation and the Value of Residential Housing," Land Economics, University of Wisconsin Press, vol. 88(1), pages 16-27.
  • Handle: RePEc:uwp:landec:v:88:y:2012:i:1:p:16-27
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Khalid Haniza, 2015. "Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 28(28), pages 113-128, June.
    2. Toke Panduro & Bo Thorsen, 2014. "Evaluating two model reduction approaches for large scale hedonic models sensitive to omitted variables and multicollinearity," Letters in Spatial and Resource Sciences, Springer, vol. 7(2), pages 85-102, July.
    3. Yoo, James & Ready, Richard, 2016. "The impact of agricultural conservation easement on nearby house prices: Incorporating spatial autocorrelation and spatial heterogeneity," Journal of Forest Economics, Elsevier, vol. 25(C), pages 78-93.
    4. Ben Hoen & Jason Brown & Thomas Jackson & Mark Thayer & Ryan Wiser & Peter Cappers, 2015. "Spatial Hedonic Analysis of the Effects of US Wind Energy Facilities on Surrounding Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 51(1), pages 22-51, July.
    5. Gianni Guastella & Stefano Pareglio & Paolo Sckokai, 2017. "A Spatial Econometric Analysis of Land Use Efficiency in Large and Small Municipalities," Working Papers 2017.03, Fondazione Eni Enrico Mattei.
    6. repec:gam:jsusta:v:10:y:2017:i:1:p:31-:d:124123 is not listed on IDEAS
    7. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.

    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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