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Willingness to Pay for Attributes of Location Efficiency

Author

Listed:
  • Jeremy Gabe

    (University of San Diego)

  • Spenser Robinson

    (Central Michigan University)

  • Andrew Sanderford

    (University of Virginia)

Abstract

This paper examines U.S. residential consumer willingness to pay for location efficiency, a normative advancement of new urbanism. Drawing on a national sample of multi-family housing data joined to measures of urban form and spatial structure, empirical models suggest three contributions to the literature. First, renters are willing to pay for greater location efficiency and for individual attributes of more efficient locations. Second, renters’ tastes and preferences for location efficiency are spatially heterogeneous. Third, location efficiency data appears to provide a meaningful level of control for locational quality. These contributions extend prior research efforts related to bid rent and urban amenities.

Suggested Citation

  • Jeremy Gabe & Spenser Robinson & Andrew Sanderford, 2022. "Willingness to Pay for Attributes of Location Efficiency," The Journal of Real Estate Finance and Economics, Springer, vol. 65(3), pages 384-418, October.
    • Handle: RePEc:kap:jrefec:v:65:y:2022:i:3:d:10.1007_s11146-021-09847-z
    DOI: 10.1007/s11146-021-09847-z
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    1. Hammerle, Mara & White, Lee V. & Sturmberg, Bjorn, 2023. "Solar for renters: Investigating investor perspectives of barriers and policies," Energy Policy, Elsevier, vol. 174(C).

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    More about this item

    Keywords

    Urban form; New urbanism; Walkability; Multi-family housing; Density; Design; Destination accessibility; Transit;
    All these keywords.

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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