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Do Incomers Pay More for Rural Housing?

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  • Nan Liu
  • Deborah Roberts

Abstract

The paper explores whether incomers pay a price premium for rural housing and, if so, whether it varies according to the origin of the buyer. Empirical analysis focuses on Aberdeenshire, Scotland, distinguishing between housing in the accessible and remote rural locations within the region. Buyers originating from Aberdeen city are found to pay more than locals in accessible rural housing markets, with the price premium highest in the high-quality housing-market segment. There is, however, no evidence that a price premium is paid by in-migrants from more distant locations. In contrast, consistent with information asymmetry and higher search costs, buyers from the rest of the UK are found to pay significantly more for high-quality properties in the remote rural area. From a methodological perspective the findings support the use of multilevel models which allow for unobserved neighbourhood effects.

Suggested Citation

  • Nan Liu & Deborah Roberts, 2012. "Do Incomers Pay More for Rural Housing?," Environment and Planning A, , vol. 44(8), pages 1986-2005, August.
    • Handle: RePEc:sae:envira:v:44:y:2012:i:8:p:1986-2005
    DOI: 10.1068/a44495
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    References listed on IDEAS

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    Cited by:

    1. Eduardo Pérez-Molina, 2022. "Exploring a multilevel approach with spatial effects to model housing price in San José, Costa Rica," Environment and Planning B, , vol. 49(3), pages 987-1004, March.
    2. Gary Bosworth & Hanne Bat Finke, 2020. "Commercial Counterurbanisation: A driving force in rural economic development," Environment and Planning A, , vol. 52(3), pages 654-674, May.
    3. Nan Liu, 2021. "Market buoyancy, information transparency and pricing strategy in the Scottish housing market," Urban Studies, Urban Studies Journal Limited, vol. 58(16), pages 3388-3406, December.
    4. Liu, Nan & Zhao, Yuan & Ge, Jiaqi, 2018. "Do renters skimp on energy efficiency during economic recessions? Evidence from Northeast Scotland," Energy, Elsevier, vol. 165(PA), pages 164-175.
    5. Yu Liu & Paul Gallimore & Jonathan Wiley, 2015. "Nonlocal Office Investors: Anchored by their Markets and Impaired by their Distance," The Journal of Real Estate Finance and Economics, Springer, vol. 50(1), pages 129-149, January.

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