Testing the Temporal Stability of Accessibility Value in Residential Hedonic Prices
Purpose â€“ This paper bridges the gap between, on the one hand, supply-driven (urban form and transportation networks) and demand-driven (action-based) accessibility to urban amenities and, on the other hand, house price dynamics as captured through panel hedonic modelling. It aims at assessing temporal changes in the valuation of accessibility, while ordering householdsâ€™ priorities among access to labour market, schools and shopping outlets. Design/methodology/approach â€“ Several indexes are built using a methodology developed by ThÃ©riault et al. (2005, published in Journal of Property Investment and Finance). They integrate car-based travel time on the road network (using GIS), distribution of opportunities (activity places) within the city, and willingness of persons to travel in order to reach specific types of activity places (mobility behaviour). While some measure centrality (potential attractiveness considering travel time, population and opportunities) others consist of action-based indexes using fuzzy logic and capture the willingness to travel in order to reach actual specific activity places (work places, schools, shopping centres, groceries). They summarise suitable opportunities available from each neighbourhood. Rescaled indices (worst - to 100 - best) are inserted simultaneously into a multiplicative hedonic model of single-family houses sold in Quebec City during years 1986, 1991 and 1996 (10,269 transactions). Manipulations of accessibility indexes are developed for ordering their relative impact on sale prices and isolate effects of each index on the variation of sale price, thus providing proxies of householdsâ€™ priorities. Moreover, a panel-like modelling approach is used to control for changes in the valuation of each property-specific, taxation or accessibility attribute during the study period. Findings â€“ This original approach proves efficient in isolating the cross-effects of urban centrality from accessibility to several types of amenities, while controlling for multicollinearity and heteroscedasticity. Results are in line with expectations. While only a few property-specific attributes experience a change in their marginal contribution to house value during the study period, all accessibility indexes do. Every single accessibility index has a much stronger effect on house values than centrality (which is still marginally significant). When buying their home, households put more emphasis on access to schools than they put on access to the labour market, which in turn, prevail over accessibility to either shopping centres or, finally, groceries. The ordering is rather stable but the actual valuation of a specific amenity may change over time. Practical implications â€“ Better understanding the effect of accessibility to amenities on house values provides guidelines for choosing among a set of new neighbourhoods to develop in order to generate optimal fiscal effects for municipalities. It could also provide guidelines for decision making when improving transportation networks or locating new activity centres.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
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.:
- S L Handy & D A Niemeier, 1997. "Measuring accessibility: an exploration of issues and alternatives," Environment and Planning A, Pion Ltd, London, vol. 29(7), pages 1175-1194, July.
- Francois Des Rosiers & Antonio Lagana & Marius Theriault, 2001. "Size and proximity effects of primary schools on surrounding house values," Journal of Property Research, Taylor & Francis Journals, vol. 18(2), pages 149-168, January.
- A S Fotheringham, 1986. "Modelling Hierarchical Destination Choice," Environment and Planning A, SAGE Publishing, vol. 18(3), pages 401-418, March.
- McMillen, Daniel P., 2003. "The return of centralization to Chicago: using repeat sales to identify changes in house price distance gradients," Regional Science and Urban Economics, Elsevier, vol. 33(3), pages 287-304, May.
- Can, Ayse & Megbolugbe, Isaac, 1997. "Spatial Dependence and House Price Index Construction," The Journal of Real Estate Finance and Economics, Springer, vol. 14(1-2), pages 203-22, Jan.-Marc.
- David Levinson, 1998. "Accessibility and the Journey to Work," Working Papers 199802, University of Minnesota: Nexus Research Group.
- 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.
- Nijkamp, Peter & Van Wissen, Leo & Rima, Annemarie, 1993.
"A household life cycle model for residential relocation behaviour,"
Socio-Economic Planning Sciences,
Elsevier, vol. 27(1), pages 35-53, March.
- Nijkamp, P. & Wissen, L.J.G. & Rima, A., 1992. "A household life cycle model for residential relocation behaviour," Serie Research Memoranda 0077, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Grieson, Ronald E. & White, James R., 1989. "The existence and capitalization of neighborhood externalities: A reassessment," Journal of Urban Economics, Elsevier, vol. 25(1), pages 68-76, January.
- Dubin, Robin A, 1998. "Predicting House Prices Using Multiple Listings Data," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 35-59, July.
- A S Fotheringham, 1986. "Modelling hierarchical destination choice," Environment and Planning A, Pion Ltd, London, vol. 18(3), pages 401-418, March.
- S L Handy & D A Niemeier, 1997. "Measuring Accessibility: An Exploration of Issues and Alternatives," Environment and Planning A, SAGE Publishing, vol. 29(7), pages 1175-1194, July.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p756. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.