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The Effect of Land Use on Housing Price and Rent: Empirical Evidence of Job Accessibility and Mixed Land Use

Author

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  • Danya Kim

    (Department of Landscape Architecture, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea)

  • Jangik Jin

    (Department of Real Estate, Graduate School of Tourism, Kyung Hee University, 26 Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, Korea)

Abstract

Recently, the improvement of job accessibility and the encouragement of mixed land use have been gaining popularity in the planning field. However, little is known about whether these two factors are able to meet housing consumers’ needs. This study aims to analyze how job accessibility and mixed land use satisfy housing consumers’ needs. Particularly, this study investigates housing consumers’ willingness to pay for these two features by using housing prices and rents in the Chicago metropolitan area. In order to deal with endogeneity between land use and housing prices and spatial autocorrelation between housing prices, spatial econometric models are used with instrumental variables. Interestingly, our findings show that an increase in job accessibility leads to an increase in housing prices, whereas it is not related to rents. We also found that mixed land use decreases housing prices, but increases rents.

Suggested Citation

  • Danya Kim & Jangik Jin, 2019. "The Effect of Land Use on Housing Price and Rent: Empirical Evidence of Job Accessibility and Mixed Land Use," Sustainability, MDPI, vol. 11(3), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:938-:d:205212
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    References listed on IDEAS

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    Cited by:

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    2. Shihong Zeng & Xinwei Zhang & Xiaowei Wang & Guowang Zeng, 2019. "Population Aging, Household Savings and Asset Prices: A Study Based on Urban Commercial Housing Prices," Sustainability, MDPI, vol. 11(11), pages 1-21, June.
    3. Yunes Almansoub & Ming Zhong & Muhammad Safdar & Asif Raza & Abdelghani Dahou & Mohammed A. A. Al-qaness, 2023. "Modeling Impact of Transportation Infrastructure-Based Accessibility on the Development of Mixed Land Use Using Deep Neural Networks: Evidence from Jiang’an District, City of Wuhan, China," Sustainability, MDPI, vol. 15(21), pages 1-40, October.
    4. Yii, Kwang-Jing & Tan, Chai-Thing & Ho, Wing-Ken & Kwan, Xiao-Hui & Nerissa, Feng-Ting Shim & Tan, Yan-Yi & Wong, Kar-Horn, 2022. "Land availability and housing price in China: Empirical evidence from nonlinear autoregressive distributed lag (NARDL)," Land Use Policy, Elsevier, vol. 113(C).
    5. Hanbing Yang & Meichen Fu & Li Wang & Feng Tang, 2021. "Mixed Land Use Evaluation and Its Impact on Housing Prices in Beijing Based on Multi-Source Big Data," Land, MDPI, vol. 10(10), pages 1-21, October.
    6. Tianzheng Zhang & Yingxiang Zeng & Yingjie Zhang & Yan Song & Hongxun Li, 2020. "The Heterogenous Demand for Urban Parks between Home Buyers and Renters: Evidence from Beijing," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
    7. Jiacheng Jiao & John Rollo & Baibai Fu, 2021. "The Hidden Characteristics of Land-Use Mix Indices: An Overview and Validity Analysis Based on the Land Use in Melbourne, Australia," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    8. Seongkyun Cho & Keechoo Choi & Yongju Yi, 2022. "Proactive and Sustainable Transport Investment Strategies to Balance the Variance of Land Use and House Prices: A Korean Case," Sustainability, MDPI, vol. 14(21), pages 1-20, October.
    9. Yunes Almansoub & Ming Zhong & Asif Raza & Muhammad Safdar & Abdelghani Dahou & Mohammed A. A. Al-qaness, 2022. "Exploring the Effects of Transportation Supply on Mixed Land-Use at the Parcel Level," Land, MDPI, vol. 11(6), pages 1-28, May.
    10. Xia, Fangzhou & Lu, Pingzhen, 2023. "Can mixed land use promote social integration? Multiple mediator analysis based on spatiotemporal big data in Beijing," Land Use Policy, Elsevier, vol. 132(C).
    11. Alessia Iannillo & Isidoro Fasolino, 2021. "Land-Use Mix and Urban Sustainability: Benefits and Indicators Analysis," Sustainability, MDPI, vol. 13(23), pages 1-18, December.
    12. Talat Munshi, 2020. "Accessibility, Infrastructure Provision and Residential Land Value: Modelling the Relation Using Geographic Weighted Regression in the City of Rajkot, India," Sustainability, MDPI, vol. 12(20), pages 1-16, October.

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