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Hedonic Analysis Over Time And Space: The Case Of House Prices And Traffic Noise

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  • Aaron Swoboda
  • Tsegaye Nega
  • Maxwell Timm

Abstract

One consequence of the expanding road network and its associated traffic is increased levels of traffic noise. While the hedonic literature has consistently found a negative relationship between real estate prices and noise levels, research in the United States has typically relied on crude measures of traffic noise. Here, we reduce the measurement error of traffic noise exposure through a detailed model of noise propagation over the landscape. We then estimate the hedonic relationship between noise and single family house prices using over 40,000 transactions throughout the St. Paul, Minnesota, urban area from 2005 to 2010. We implement spatially and temporally flexible local regression techniques and find significant nonstationarity in the hedonic function over time and space.

Suggested Citation

  • Aaron Swoboda & Tsegaye Nega & Maxwell Timm, 2015. "Hedonic Analysis Over Time And Space: The Case Of House Prices And Traffic Noise," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 644-670, September.
    • Handle: RePEc:bla:jregsc:v:55:y:2015:i:4:p:644-670
    DOI: 10.1111/jors.12187
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    3. Francisco Guijarro, 2019. "Assessing the Impact of Road Traffic Externalities on Residential Price Values: A Case Study in Madrid, Spain," IJERPH, MDPI, vol. 16(24), pages 1-13, December.
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    5. Agnieszka Szczepańska & Adam Senetra & Monika Wasilewicz-Pszczółkowska, 2020. "The Influence of Traffic Noise on Apartment Prices on the Example of a European Urban Agglomeration," Sustainability, MDPI, vol. 12(3), pages 1-14, January.
    6. John Murray & Eleni Bardaka, 2022. "Evaluating the spatial and temporal distribution of beltway effects on housing prices using difference-in-differences methods," Transportation, Springer, vol. 49(6), pages 1963-1998, December.
    7. Cohen, Jeffrey P. & Coughlin, Cletus C. & Crews, Jonas, 2019. "Traffic noise in Georgia: Sound levels and inequality," Journal of Housing Economics, Elsevier, vol. 44(C), pages 150-165.
    8. Diao, Mi & Li, Qiang & Sing, Tien Foo & Zhan, Changwei, 2023. "Disamenities of living close to transit tracks: Evidence from Singapore's MRT system," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    9. Fernandez, Mario Andres & Bucaram, Santiago, 2019. "The changing face of environmental amenities: Heterogeneity across housing submarkets and time," Land Use Policy, Elsevier, vol. 83(C), pages 449-460.
    10. Helen X. H. Bao & Doris Ka Chuen Mok, 2020. "A Link between East and West: How the Guangzhou-Shenzhen-Hong Kong Express Rail Link Affects Property Prices in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 23(3), pages 993-1021.
    11. Cheng Keat Tang, 2016. "Traffic Externalities and Housing Prices: Evidence from the London Congestion Charge," SERC Discussion Papers 0205, Centre for Economic Performance, LSE.
    12. Song Zhang & Mark van Duijn & Arno J. van der Vlist, 2020. "The external effects of inner‐city shopping centers: Evidence from the Netherlands," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 583-611, September.
    13. Yi Fan & Ho Pin Teo & Wayne X. Wan, 2021. "Public transport, noise complaints, and housing: Evidence from sentiment analysis in Singapore," Journal of Regional Science, Wiley Blackwell, vol. 61(3), pages 570-596, June.
    14. Kopsch, Fredrik, 2016. "The cost of aircraft noise – Does it differ from road noise? A meta-analysis," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 138-142.
    15. Andersson, Henrik & Swärdh , Jan-Erik & Ögren , Mikael, 2015. "Traffic noise effects of property prices: hedonic estimates based on multiple noise indicators," Working papers in Transport Economics 2015:11, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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