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Commercial and residential land prices across the United States

Author

Listed:
  • Joseph B. Nichols
  • Stephen D. Oliner
  • Michael R. Mulhall

Abstract

We use a national dataset of land sales to construct land price indexes for 23 MSAs in the United States and for the aggregate of those MSAs. We construct the price indexes by estimating hedonic regressions with a large sample of land transactions dating back to the mid-1990s. The regressions feature a flexible method of controlling for spatial price patterns within an MSA. The resulting price indexes show a dramatic increase in both commercial and residential land prices over several years prior to their peak in 2006-07 and a steep descent since then. These fluctuations in land prices are considerably larger than those in well-known indexes of commercial real estate and house prices. Because those existing indexes price a bundle of land and structures, this comparison implies that land prices have been more volatile than structures prices over this period.

Suggested Citation

  • Joseph B. Nichols & Stephen D. Oliner & Michael R. Mulhall, 2010. "Commercial and residential land prices across the United States," Finance and Economics Discussion Series 2010-16, Board of Governors of the Federal Reserve System (U.S.).
  • Handle: RePEc:fip:fedgfe:2010-16
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    References listed on IDEAS

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    Cited by:

    1. Richard Arnott & Huiling Zhang, 2015. "The Aggregate Value of Land in the Greater Los Angeles Region," Working Papers 201506, University of California at Riverside, Department of Economics.

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    Keywords

    Real property ; Prices;

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