Accessibility Dynamics and Location Premia: Do Land Values Follow Accessibility Changes?
The structure of transportation networks and the patterns of accessibility they give rise to are an important determinant of land prices, and hence urban spatial structure. While there is ample evidence on the cross-sectional relationship between location and land value (usually measured from the value of improved property), there is much less evidence available on the changes in this relationship over time, especially where location is represented using a disaggregate measure of urban accessibility. This paper provides evidence of this dynamic relationship using data on home sales in the Minneapolis-St Paul, MN, USA metropolitan area, coupled with disaggregate measures of urban accessibility for multiple modes, for the period from 2000 to 2005. Our investigation tracks the effects of marginal changes in accessibility over time, as opposed to static, cross- sectional relationships, by using an approach in which the unit of observation is a â€˜representative houseâ€™ for each transportation analysis zone in the region. This approach allows us to control for changes in structural attributes of houses over time, while also isolating the effect of changes in accessibility levels. Results of this approach are compared with a cross-sectional model using the same variables for a single year to illustrate important differences. Empirical estimates indicate that while most of the models estimated using a cross-sectional specification yield positive and significant effects of accessibility on sale prices, these effects disappear when the models are transformed into first-difference form. We explain these findings in light of the state of maturity of urban transportation networks.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Dept. of Civil Engineering, 500 Pillsbury Drive SE, Minneapolis, MN 55455|
Phone: +01 (612) 625-6354
Fax: +01 (612) 626-7750
Web page: http://nexus.umn.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Atack, Jeremy & Margo, Robert A, 1998. ""Location, Location, Location!" The Price Gradient for Vacant Urban Land: New York, 1835 to 1900," The Journal of Real Estate Finance and Economics, Springer, vol. 16(2), pages 151-172, March.
- McMillen, Daniel P., 2008. "Changes in the distribution of house prices over time: Structural characteristics, neighborhood, or coefficients?," Journal of Urban Economics, Elsevier, vol. 64(3), pages 573-589, November.
- McMillen, Daniel P., 1996. "One Hundred Fifty Years of Land Values in Chicago: A Nonparametric Approach," Journal of Urban Economics, Elsevier, vol. 40(1), pages 100-124, July.
- Archer*, Wayne R. & Gatzlaff+, Dean H. & Ling*, David C., 1996. "Measuring the Importance of Location in House Price Appreciation," Journal of Urban Economics, Elsevier, vol. 40(3), pages 334-353, November.
- E Heikkila & P Gordon & J I Kim & R B Peiser & H W Richardson & D Dale-Johnson, 1989. "What Happened to the CBD-Distance Gradient?: Land Values in a Policentric City," Environment and Planning A, , vol. 21(2), pages 221-232, February.
- Allen C. Goodman & Thomas G. Thibodeau, 2007. "The Spatial Proximity of Metropolitan Area Housing Submarkets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 35(2), pages 209-232, 06.
- P Gordon & H W Richardson & H L Wong, 1986. "The Distribution of Population and Employment in a Polycentric City: The Case of Los Angeles," Environment and Planning A, , vol. 18(2), pages 161-173, February.
- James Frew & G. Donald Jud, 2003. "Estimating the Value of Apartment Buildings," Journal of Real Estate Research, American Real Estate Society, vol. 25(1), pages 77-86.
- Edel, Matthew & Sclar, Elliott, 1975. "The distribution of real estate value changes: Metropolitan Boston, 1870-1970," Journal of Urban Economics, Elsevier, vol. 2(4), pages 366-387, October.
- J F McDonald & D P McMillen, 1990.
"Employment subcenters and land values in a polycentric urban area: the case of Chicago,"
Environment and Planning A,
Pion Ltd, London, vol. 22(12), pages 1561-1574, December.
- J F McDonald & D P McMillen, 1990. "Employment Subcenters and Land Values in a Polycentric Urban Area: The Case of Chicago," Environment and Planning A, , vol. 22(12), pages 1561-1574, December.
- H W Richardson & P Gordon & M-J Jun & E Heikkila & R Peiser & D Dale-Johnson, 1990. "Residential Property Values, the CBD, and Multiple Nodes: Further Analysis," Environment and Planning A, , vol. 22(6), pages 829-833, June.
- Richardson, Harry W, 1988. "Monocentric vs. Policentric Models: The Future of Urban Economics in Regional Science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 22(2), pages 1-12, July.
- Dean H. Gatzlaff & Marc T. Smith, 1993. "The Impact of the Miami Metrorail on the Value of Residences near Station Locations," Land Economics, University of Wisconsin Press, vol. 69(1), pages 54-66.
- Waddell, Paul & Berry, Brian J L & Hoch, Irving, 1993. "Residential Property Values in a Multinodal Urban Area: New Evidence on the Implicit Price of Location," The Journal of Real Estate Finance and Economics, Springer, vol. 7(2), pages 117-141, September.
- McDonald, John F., 1987. "The identification of urban employment subcenters," Journal of Urban Economics, Elsevier, vol. 21(2), pages 242-258, March.
- Redfearn, Christian L., 2007. "The topography of metropolitan employment: Identifying centers of employment in a polycentric urban area," Journal of Urban Economics, Elsevier, vol. 61(3), pages 519-541, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:nex:wpaper:accessdynamics. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Levinson)
If references are entirely missing, you can add them using this form.