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Do Urban Amenities Drive Housing Rent?

Author

Listed:
  • Shimizu, Chihiro
  • Yasumoto, Shinya
  • Asami, Yasushi
  • Clark, Terry Nichols

Abstract

What brought the concentration of people to certain areas? And how much are households prepared to pay in exchange for being part of such concentrations? Focusing on the Tokyo metropolitan area, which is one of the world’s largest urban areas, this paper aggregates individual data relating to urban amenities in small areas and explores its relationship to population concentration, as well as clarifying its relationship to rent (housing service prices). It is understood from the obtained results that a concentration f urban amenities produces population concentration and also raises housing rent. In addition, it is shown that when measuring the degree of amenity concentration, it is the diversity of amenities, not simply the total number of amenities that is important. Concentration of diverse amenities enhances an area’s appeal, and as a result, households will seek to reside there even if rents are high. Among the various types of amenities, it was observed that amenities such as recreational classes, educational facilities and convenience facilities such as restaurants have positive externality. On the other hand, a clear negative relationship was found between housing rent and amenities with negative externality, such as cemeteries and video arcades.

Suggested Citation

  • Shimizu, Chihiro & Yasumoto, Shinya & Asami, Yasushi & Clark, Terry Nichols, 2014. "Do Urban Amenities Drive Housing Rent?," HIT-REFINED Working Paper Series 9, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:remfce:9
    Note: First version: July 26, 2014, This version: Aug 16, 2014
    as

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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/26840/wp009.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kono, Tatsuhito & Tsutaki, Keisuke, 2023. "Residential Land Use and Utilities of Multiple Generations with Lifespan Perspectives and Demographic Dynamics," MPRA Paper 117595, University Library of Munich, Germany.
    2. Lily Kiminami & Akira Kiminami & Shinichi Furuzawa, 2018. "Impacts of multi-functionality of urban agriculture on the CCs in Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 507-527, August.

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    More about this item

    Keywords

    amenity concentration; population concentration; housing service prices; hedonic approach; Geographic Information System (GIS);
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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