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The Relationship of Housing Prices and Transportation Improvements: Location and Marginal Impact

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  • Vifill Karlsson

Abstract

Abstract In this paper, I examine the relationship between housing prices and transport improvements. The relationship between distance and housing prices is known to be negative for a densely populated area. I will examine whether this relationship holds for a sparsely populated area, and will test whether this relationship is convex with respect to distance. A macro panel dataset from Iceland will be used. The existence of the expected relationship is among the main findings. Thus, transportation improvements between the CBD and other localities have greater marginal impact on the local real price of houses in closer localities compared to those which are farther away. Rapports marginaux entre prix de l'immobilier et améliorations dans les transports: emplacement et impact marginal Résumé Dans la présente communication, j'examine le rapport entre le prix de l'immobilier et l'amélioration des transports. On sait que le rapport entre la distance et le prix de l'immobilier est négatif pour les zones à forte densité de population. Je vais examiner si ce rapport reste vrai pour des zones à faible densité, et effectuer des essais afin d’établir si ce rapport est convexe en fonction de la distance. Un ensemble de données de macro panel provenant d'Islande sera utilisé. Une des principales conclusions est l'existence de rapports prévus. Ainsi, les améliorations des transports entre CBD et d'autres lieux ont un impact marginal supérieur sur le prix réel local de l'immobilier dans des localités plus proches, par rapport à des localités plus éloignées. La relación marginal de los precios de la vivienda y las mejoras del transporte: ubicación e impacto marginal Extracto En este trabajo examino la relación entre los precios de la vivienda y las mejoras en el transporte. Se sabe que la relación entre la distancia y los precios de la vivienda es negativa en las áreas densamente pobladas. Examinaré si esta relación se mantiene en un área escasamente poblada, y ensayaré si es convexa con respecto a la distancia. Se utilizará un conjunto de datos de macro-panel procedente de Islandia. La existencia de la relación esperada es uno de los principales descubrimientos. Así, las mejoras del transporte entre el CBD (distrito central de negocios) y otras localidades tienen un mayor impacto marginal sobre el precio local real de la vivienda en localidades más próximas, en comparación con las que están más alejadas.

Suggested Citation

  • Vifill Karlsson, 2011. "The Relationship of Housing Prices and Transportation Improvements: Location and Marginal Impact," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 223-241.
    • Handle: RePEc:taf:specan:v:6:y:2011:i:2:p:223-241
    DOI: 10.1080/17421772.2011.557774
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    More about this item

    Keywords

    House prices; transportation improvements; distance gradient; local; R40; R21; R41; C23;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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