IDEAS home Printed from
   My bibliography  Save this paper

Location, Regional Accessibility and Price Effects: Evidence from Twin Cities Home Sales


  • Michael Iacono
  • David Levinson

    () (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)


Regional location factors, with measures of regional accessibility foremost among them, exert a strong influence on urban property markets. While accessibility represents an important regional-scale factor, more local influences such as proximity to urban highway links may also positively or negatively influence the desirability of a location. In this paper, we use a cross-section of home sales in Hennepin County, Minnesota from the years 2001 through 2004, along with a set of disaggregate regional accessibility measures, to estimate the value of access to employment and resident workers. We also estimate the (dis)amenity effects of locations near major freeway links that have recently undergone, or were scheduled to undergo (as of the time period covered by the home sales), major construction to add capacity. The richness of the home sales data set allows us to control for a number of structural attributes, as well as some site characteristics, while additional neighborhood characteristics (such as income levels and local educational quality) are added from supplemental data sources. Empirical results indicate that households highly value employment access, while access to other resident workers (i.e. competition for jobs) is considered a disamenity. Proximity to local highway access points is positively associated with sale price, while proximity to the highway link itself is negatively associated with price. The paper concludes with some implications for research and practice of the concept and measurement of the relationship between location and land value.

Suggested Citation

  • Michael Iacono & David Levinson, 2010. "Location, Regional Accessibility and Price Effects: Evidence from Twin Cities Home Sales," Working Papers 000081, University of Minnesota: Nexus Research Group.
  • Handle: RePEc:nex:wpaper:hennepinhedonics

    Download full text from publisher

    File URL:
    File Function: Second version, 2011
    Download Restriction: no

    References listed on IDEAS

    1. David Levinson & Ramachandra Karamalaputi, 2003. "Induced Supply: A Model of Highway Network Expansion at the Microscopic Level," Journal of Transport Economics and Policy, University of Bath, vol. 37(3), pages 297-318, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Transportation Ð Economics; Land Value; Accessibility; Hennepin County (MN);

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:nex:wpaper:hennepinhedonics. 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). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.