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Factors Affecting Housing Modifications and Housing Pricing: A Case Study of Four Residential Neighborhoods in Haifa, Israel

Author

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  • Boris A. Portnov

    (Department of Natural Resources & Environmental Management,Faculty of Social Sciences, University of Haifa, Mount Carmel, Haifa)

  • Yakov Odish

    (Department of Geography, Faculty of Social Sciences,Hebrew University of Jerusalem)

  • Larissa Fleishman

    (Department of Geography, Faculty of Social Sciences,Hebrew University of Jerusalem)

Abstract

The relationships among three groups of variables - environmental conditions in residential neighborhoods, post-occupancy housing changes and modifications (HCMs), and the market values of residential properties - are investigated. While traditional hedonic modeling assumes the existence of direct links between environmental factors and property values, this paper suggests that such links are indirect and work through the investment decisions of homeowners, who choose to invest (or not to invest) in the maintenance and/or expansion of their properties. To verify this assumption, HCMs accumulated in four residential neighborhoods in Haifa, Israel are analyzed. The findings indicate a fairly strong association between environmental factors, building characteristics, rehabilitation activity and property values in these neighborhoods. The paper suggests an extra benefit for improving the environment, due to the dynamic process that may cause further investment.

Suggested Citation

  • Boris A. Portnov & Yakov Odish & Larissa Fleishman, 2005. "Factors Affecting Housing Modifications and Housing Pricing: A Case Study of Four Residential Neighborhoods in Haifa, Israel," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 371-408.
    • Handle: RePEc:jre:issued:v:27:n:4:2005:p:371-408
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    References listed on IDEAS

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    1. Georgios Kavetsos, 2012. "The Impact of the London Olympics Announcement on Property Prices," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1453-1470, May.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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