IDEAS home Printed from https://ideas.repec.org/a/vrs/bjrecm/v8y2020i1p227-241n16.html
   My bibliography  Save this article

Conventional Methods in Housing Market Analysis: A Review of Literature

Author

Listed:
  • Bello Musa Zango

    (Department of Estate Management, Baze University, Abuja, Nigeria)

  • Sanni Mohammed Lekan
  • Mohammed Jibrin Katun

    (Department of Urban and Regional Planning, Federal University of Technology, Minna, Nigeria)

Abstract

Housing market analysis has witnessed considerable changes in recent decades, especially as a result of the complexity of human settlements and the dynamics of property market analytical techniques. This paper reviews various techniques/methods adopted by researchers and housing experts in analysing the housing market in recent times. The present study is a literature review and, therefore, essentially relies on published data sourced from academic journals, conference papers, thesis, and other secondary sources. The paper highlights the methods considered appropriate and relevant for different property market scenarios, especially in developing countries. The paper, therefore, recommends what it regards as the most appropriate basis for a housing market analysis and research in developing countries against the backdrop of the dynamics of the property market.

Suggested Citation

  • Bello Musa Zango & Sanni Mohammed Lekan & Mohammed Jibrin Katun, 2020. "Conventional Methods in Housing Market Analysis: A Review of Literature," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 8(1), pages 227-241, January.
  • Handle: RePEc:vrs:bjrecm:v:8:y:2020:i:1:p:227-241:n:16
    DOI: 10.2478/bjreecm-2020-0016
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/bjreecm-2020-0016
    Download Restriction: no

    File URL: https://libkey.io/10.2478/bjreecm-2020-0016?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
    ---><---

    References listed on IDEAS

    as
    1. Marco Helbich & Wolfgang Brunauer & Eric Vaz & Peter Nijkamp, 2014. "Spatial Heterogeneity in Hedonic House Price Models: The Case of Austria," Urban Studies, Urban Studies Journal Limited, vol. 51(2), pages 390-411, February.
    2. Yuan Zhang & Yiguo Sun & Thanasis Stengos, 2019. "Spatial Dependence in the Residential Canadian Housing Market," The Journal of Real Estate Finance and Economics, Springer, vol. 58(2), pages 223-263, February.
    3. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2015. "The Housing Market Impacts of Shale Gas Development," American Economic Review, American Economic Association, vol. 105(12), pages 3633-3659, December.
    4. Sandmo, Agnar, 2014. "The Market in Economics: Behavioural Assumptions and Value Judgments," Discussion Paper Series in Economics 12/2014, Norwegian School of Economics, Department of Economics.
    5. Okmyung Bin & Jamie Brown Kruse & Craig E. Landry, 2008. "Flood Hazards, Insurance Rates, and Amenities: Evidence From the Coastal Housing Market," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(1), pages 63-82, March.
    6. Hanson, Andrew & Hawley, Zackary, 2011. "Do landlords discriminate in the rental housing market? Evidence from an internet field experiment in US cities," Journal of Urban Economics, Elsevier, vol. 70(2-3), pages 99-114, September.
    7. Liao, Wen-Chi & Wang, Xizhu, 2012. "Hedonic house prices and spatial quantile regression," Journal of Housing Economics, Elsevier, vol. 21(1), pages 16-27.
    8. Zhou, Zhengyi, 2018. "Housing market sentiment and intervention effectiveness: Evidence from China," Emerging Markets Review, Elsevier, vol. 35(C), pages 91-110.
    9. Nicolas Devaux Etienne Berthold & Jean Dubé, 2018. "Economic Impact of a Heritage Policy on Residential Property Values in a Historic District Context: The Case of the Old City of Quebec," The Review of Regional Studies, Southern Regional Science Association, vol. 48(3), pages 279-297, Winter.
    10. Cheng-Few Lee & John C. Lee (ed.), 2015. "Handbook of Financial Econometrics and Statistics," Springer Books, Springer, edition 127, number 978-1-4614-7750-1, June.
    11. Nana Cui & Hengyu Gu & Tiyan Shen & Changchun Feng, 2018. "The Impact of Micro-Level Influencing Factors on Home Value: A Housing Price-Rent Comparison," Sustainability, MDPI, vol. 10(12), pages 1-23, November.
    12. Veronika Liebelt & Stephan Bartke & Nina Schwarz, 2018. "Hedonic pricing analysis of the influence of urban green spaces onto residential prices: the case of Leipzig, Germany," European Planning Studies, Taylor & Francis Journals, vol. 26(1), pages 133-157, January.
    13. Mi Diao, 2015. "Selectivity, spatial autocorrelation and the valuation of transit accessibility," Urban Studies, Urban Studies Journal Limited, vol. 52(1), pages 159-177, January.
    14. You Seok Chung & Ducksu Seo & Jaehwan Kim, 2018. "Price Determinants and GIS Analysis of the Housing Market in Vietnam: The Cases of Ho Chi Minh City and Hanoi," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    15. Luc Anselin & Julie Le Gallo, 2006. "Interpolation of air quality measures in hedonic house price models : spatial aspects," Post-Print hal-00485017, HAL.
    16. James R. Coakley & Carol E. Brown, 2000. "Artificial neural networks in accounting and finance: modeling issues," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 9(2), pages 119-144, June.
    17. Yong Tu & Hua Sun & Shi-Ming Yu, 2007. "Spatial Autocorrelations and Urban Housing Market Segmentation," The Journal of Real Estate Finance and Economics, Springer, vol. 34(3), pages 385-406, April.
    18. Stephen Malpezzi, "undated". "Hedonic Pricing Models: A Selective and Applied Review," Wisconsin-Madison CULER working papers 02-05, University of Wisconsin Center for Urban Land Economic Research.
    19. Jing Wu & Yongheng Deng & Hongyu Liu, 2014. "House Price Index Construction in the Nascent Housing Market: The Case of China," The Journal of Real Estate Finance and Economics, Springer, vol. 48(3), pages 522-545, April.
    20. Guillaume Bérard & Alain Trannoy, 2018. "The impact of the 2014 increase in the real estate transfer taxes on the French housing market," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 500-501-5, pages 179-200.
    21. Dubin, Robin A., 1998. "Spatial Autocorrelation: A Primer," Journal of Housing Economics, Elsevier, vol. 7(4), pages 304-327, December.
    22. Richard Meese & Nancy Wallace, 1991. "Nonparametric Estimation of Dynamic Hedonic Price Models and the Construction of Residential Housing Price Indices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 308-332, September.
    23. Dubin, Robin A., 1992. "Spatial autocorrelation and neighborhood quality," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 433-452, September.
    24. Basu, Sabyasachi & Thibodeau, Thomas G, 1998. "Analysis of Spatial Autocorrelation in House Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 61-85, July.
    25. Brounen, Dirk & Kok, Nils, 2011. "On the economics of energy labels in the housing market," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 166-179, September.
    26. Yusuf, Arief Anshory & Resosudarmo, Budy P., 2009. "Does clean air matter in developing countries' megacities? A hedonic price analysis of the Jakarta housing market, Indonesia," Ecological Economics, Elsevier, vol. 68(5), pages 1398-1407, March.
    27. Li, Xiaolu & Tang, Yang, 2018. "When natives meet immigrants in public and private housing markets," Journal of Housing Economics, Elsevier, vol. 41(C), pages 30-44.
    28. Gulyani, Sumila & Talukdar, Debabrata & Bassett, Ellen M., 2018. "A sharing economy? Unpacking demand and living conditions in the urban housing market in Kenya," World Development, Elsevier, vol. 109(C), pages 57-72.
    29. Eunah Jung & Heeyeun Yoon, 2018. "Is Flood Risk Capitalized into Real Estate Market Value? A Mahalanobis-Metric Matching Approach to the Housing Market in Gyeonggi, South Korea," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    2. Alice Barreca & Elena Fregonara & Diana Rolando, 2021. "EPC Labels and Building Features: Spatial Implications over Housing Prices," Sustainability, MDPI, vol. 13(5), pages 1-21, March.
    3. Alan T. K. Wan & Shangyu Xie & Yong Zhou, 2017. "A varying coefficient approach to estimating hedonic housing price functions and their quantiles," Journal of Applied Statistics, Taylor & Francis Journals, vol. 44(11), pages 1979-1999, August.
    4. David Maddison, 2009. "A Spatio‐temporal Model of Farmland Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 171-189, February.
    5. Koen Koning & Tatiana Filatova & Okmyung Bin, 2018. "Improved Methods for Predicting Property Prices in Hazard Prone Dynamic Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 247-263, February.
    6. Antonio Páez & Fei Long & Steven Farber, 2008. "Moving Window Approaches for Hedonic Price Estimation: An Empirical Comparison of Modelling Techniques," Urban Studies, Urban Studies Journal Limited, vol. 45(8), pages 1565-1581, July.
    7. Catherine Baumont, 2009. "Spatial effects of urban public policies on housing values," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 301-326, June.
    8. Helen R. Neill & David M. Hassenzahl & Djeto D. Assane, 2007. "Estimating the Effect of Air Quality: Spatial versus Traditional Hedonic Price Models," Southern Economic Journal, John Wiley & Sons, vol. 73(4), pages 1088-1111, April.
    9. Daniel Broxterman & Tingyu Zhou, 2023. "Information Frictions in Real Estate Markets: Recent Evidence and Issues," The Journal of Real Estate Finance and Economics, Springer, vol. 66(2), pages 203-298, February.
    10. Daniel Lo & Kwong Wing Chau & Siu Kei Wong & Michael McCord & Martin Haran, 2022. "Factors Affecting Spatial Autocorrelation in Residential Property Prices," Land, MDPI, vol. 11(6), pages 1-16, June.
    11. Monica Palma & Claudia Cappello & Sandra De Iaco & Daniela Pellegrino, 2019. "The residential real estate market in Italy: a spatio-temporal analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(5), pages 2451-2472, September.
    12. Gabriel S. Lee & Stefanie Braun, 2021. "Agglomeration Spillover Effects in German Land and House Prices at the City and County Levels," Working Papers 207, Bavarian Graduate Program in Economics (BGPE).
    13. Mateusz Tomal & Marco Helbich, 2023. "A spatial autoregressive geographically weighted quantile regression to explore housing rent determinants in Amsterdam and Warsaw," Environment and Planning B, , vol. 50(3), pages 579-599, March.
    14. Bełej, Mirosław & Cellmer, Radosław & Foryś, Iwona & Głuszak, Michał, 2023. "Airports in the urban landscape: externalities, stigmatization and housing market," Land Use Policy, Elsevier, vol. 126(C).
    15. Catherine Baumont & Masha Maslianskaia-Pautrel & Pierre Voyé, 2019. "Hedonic estimation of the green value of residential housing," Working Papers 2019.20, FAERE - French Association of Environmental and Resource Economists.
    16. Zhang, Lei, 2016. "Flood hazards impact on neighborhood house prices: A spatial quantile regression analysis," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 12-19.
    17. Yi Huang & Sandy Dall’erba, 2021. "Does Proximity to School Still Matter Once Access to Your Preferred School Zone Has Already Been Secured?," The Journal of Real Estate Finance and Economics, Springer, vol. 62(4), pages 548-577, May.
    18. Trojanek, Radoslaw & Huderek-Glapska, Sonia, 2018. "Measuring the noise cost of aviation – The association between the Limited Use Area around Warsaw Chopin Airport and property values," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 103-114.
    19. Marco Helbich & Wolfgang Brunauer & Eric Vaz & Peter Nijkamp, 2014. "Spatial Heterogeneity in Hedonic House Price Models: The Case of Austria," Urban Studies, Urban Studies Journal Limited, vol. 51(2), pages 390-411, February.
    20. repec:asg:wpaper:1006 is not listed on IDEAS
    21. Marko Kryvobokov, 2011. "Defining apartment neighbourhoods with Thiessen polygons and fuzzy equality clustering," ERES eres2011_142, European Real Estate Society (ERES).

    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:vrs:bjrecm:v:8:y:2020:i:1:p:227-241:n:16. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    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.