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The Value of Residential Land and Structures during the Great Housing Boom and Bust

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  • Nicolai V. Kuminoff
  • Jaren C. Pope

Abstract

This study examines how the value of residential land and structures evolved during the great housing boom and bust, using data on more than a million residential properties that were sold in 10 metropolitan areas between 1998 and 2009. We use a hedonic estimator to disentangle the market value of land and structures at a local (Census tract) level. Our estimates reveal substantial heterogeneity in the evolution of the market value of land and structures within metropolitan areas. Surprisingly, lowervalue land at the urban fringes of metropolitan areas was the most volatile during the boom-bust.

Suggested Citation

  • Nicolai V. Kuminoff & Jaren C. Pope, 2013. "The Value of Residential Land and Structures during the Great Housing Boom and Bust," Land Economics, University of Wisconsin Press, vol. 89(1), pages 1-29.
  • Handle: RePEc:uwp:landec:v:89:y:2013:i:1:p:1-29
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Qin Fan & J. Andrew Hansz & Xiaoming Yang, 2016. "The Pricing Effects of Open Space Amenities," The Journal of Real Estate Finance and Economics, Springer, vol. 52(3), pages 244-271, April.
    2. Satyajit Chatterjee & Burcu Eyigungor, 2013. "Do supply restrictions raise the value of urban land? The (neglected) role of production externalities," Working Papers 13-37, Federal Reserve Bank of Philadelphia.
    3. Ismir Mulalic & Holger Rasmussen & Jan Rouwendal & Hans Henrik Woltmann, 2017. "The Financial Crisis and Diverging House Prices: Evidence from the Copenhagen Metropolitan Area," Tinbergen Institute Discussion Papers 17-084/VIII, Tinbergen Institute.
    4. William Larson, 2015. "New Estimates of Value of Land of the United States," BEA Working Papers 0120, Bureau of Economic Analysis.
    5. Piazzesi, M. & Schneider, M., 2016. "Housing and Macroeconomics," Handbook of Macroeconomics, Elsevier.
    6. Carrillo, Paul E. & Pope, Jaren C., 2012. "Are homes hot or cold potatoes? The distribution of marketing time in the housing market," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 189-197.
    7. repec:gam:jlands:v:6:y:2017:i:3:p:54-:d:109306 is not listed on IDEAS
    8. Hamilton, Timothy L. & Phaneuf, Daniel J., 2015. "An integrated model of regional and local residential sorting with application to air quality," Journal of Environmental Economics and Management, Elsevier, vol. 74(C), pages 71-93.
    9. Wendong Zhang & Cynthia J. Nickerson, 2015. "Housing Market Bust and Farmland Values: Identifying the Changing Influence of Proximity to Urban Centers," Land Economics, University of Wisconsin Press, vol. 91(4), pages 605-626.
    10. repec:kap:enreec:v:68:y:2017:i:2:d:10.1007_s10640-016-0020-8 is not listed on IDEAS
    11. Boslett, Andrew & Guilfoos, Todd & Lang, Corey, 2016. "Valuation of expectations: A hedonic study of shale gas development and New York’s moratorium," Journal of Environmental Economics and Management, Elsevier, vol. 77(C), pages 14-30.
    12. repec:eee:resene:v:50:y:2017:i:c:p:1-14 is not listed on IDEAS

    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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