IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa06p492.html
   My bibliography  Save this paper

Evaluating Housing Price Predictability of Alternative Hedonic Model Formulations

Author

Listed:
  • Liv Osland
  • Inge Thorsen

Abstract

We first use alternative hedonic model formulations to compare predicted and observed prices of property transactions in alternative locations. The estimation of model parameters is based on data from Western Norway, and the model formulations differ with respect to the representation of spatial structure. We discuss how measures like the distance to the cbd and a gravity based accessibility measure of labour market accessibility, contribute to predict spatial variations in housing prices. We also discuss how appropriate alternative models are to predict possible consequences on housing prices of changes in the spatial distribution of employment, and in the road transportation network. Finally, we recommend that a relative measure of labour market accessibility is introduced, to capture effects of spatial competition in the housing market.

Suggested Citation

  • Liv Osland & Inge Thorsen, 2006. "Evaluating Housing Price Predictability of Alternative Hedonic Model Formulations," ERSA conference papers ersa06p492, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa06p492
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa06/papers/492.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McMillen, Daniel P., 2003. "The return of centralization to Chicago: using repeat sales to identify changes in house price distance gradients," Regional Science and Urban Economics, Elsevier, vol. 33(3), pages 287-304, May.
    2. Piet Rietveld, 1989. "Employment Effects Of Changes In Transportation Infrastructure: Methodological Aspects Of The Gravity Model," Papers in Regional Science, Wiley Blackwell, vol. 66(1), pages 19-30, January.
    3. E Heikkila & P Gordon & J I Kim & R B Peiser & H W Richardson & D Dale-Johnson, 1989. "What Happened to the CBD-Distance Gradient?: Land Values in a Policentric City," Environment and Planning A, , vol. 21(2), pages 221-232, February.
    4. Osland, Liv & Thorsen, Inge & Gitlesen, Jens Petter, 2005. "Housing price gradients in a geography with one dominating center," Working Papers in Economics 06/05, University of Bergen, Department of Economics.
    5. Michael Wegener, 1998. "Applied Models of Urban Land Use, Transport and Environment: State of the Art and Future Developments," Advances in Spatial Science, in: Lars Lundqvist & Lars-Göran Mattsson & Tschangho John Kim (ed.), Network Infrastructure and the Urban Environment, chapter 14, pages 245-267, Springer.
    6. Lars Lundqvist & Lars-Göran Mattsson & Tschangho John Kim (ed.), 1998. "Network Infrastructure and the Urban Environment," Advances in Spatial Science, Springer, number 978-3-642-72242-4.
    7. Osland, Liv & Thorsen, Inge, 2005. "Effects on housing prices of urban attraction and labor market accessibility," Working Papers in Economics 17/05, University of Bergen, Department of Economics.
    8. Waddell, Paul & Berry, Brian J L & Hoch, Irving, 1993. "Residential Property Values in a Multinodal Urban Area: New Evidence on the Implicit Price of Location," The Journal of Real Estate Finance and Economics, Springer, vol. 7(2), pages 117-141, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Osland, Liv & Thorsen, Inge, 2007. "Predicting housing prices at alternative locations and in alternative scenarios of the spatial job distribution," Working Papers in Economics 16/07, University of Bergen, Department of Economics.
    2. Liv Osland & Inge Thorsen, 2006. "Testing for the Impact of Local Labour Market Characteristics on House Prices," ERSA conference papers ersa06p490, European Regional Science Association.
    3. Michael Iacono & David Levinson, 2017. "Accessibility dynamics and location premia: Do land values follow accessibility changes?," Urban Studies, Urban Studies Journal Limited, vol. 54(2), pages 364-381, February.
    4. Inge Thorsen & Jens Petter Gitlesen, 2002. "A Simulation Approach to Studying the Sensitivity of Commuting-Flow Predictions with Respect to Specific Changes in Spatial Structure," Environment and Planning A, , vol. 34(2), pages 271-288, February.
    5. Liv Osland & Kenneth Gibb & Gwilym Pryce, 2011. "Inequalities in Access to Employment and the Impact on Wellbeing: A Criterion for Spatial Planning?," ERSA conference papers ersa10p717, European Regional Science Association.
    6. Eliasson, Jonas & Mattsson, Lars-Göran, 2000. "A model for integrated analysis of household location and travel choices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(5), pages 375-394, June.
    7. Jan Ubøe, 2004. "Aggregation of Gravity Models for Journeys to Work," Environment and Planning A, , vol. 36(4), pages 715-729, April.
    8. Schürmann, Carsten & Moeckel, Rolf & Wegener, Michael, 2002. "Microsimulation of urban land use," ERSA conference papers ersa02p261, European Regional Science Association.
    9. Liv Osland & Inge Thorsen, 2008. "Effects on Housing Prices of Urban Attraction and Labor-Market Accessibility," Environment and Planning A, , vol. 40(10), pages 2490-2509, October.
    10. McMillen, Daniel P., 2003. "The return of centralization to Chicago: using repeat sales to identify changes in house price distance gradients," Regional Science and Urban Economics, Elsevier, vol. 33(3), pages 287-304, May.
    11. Glenn, Paul & Thorsen, Inge & Ubøe, Jan, 2004. "Wage payoffs and distance deterrence in the journey to work," Transportation Research Part B: Methodological, Elsevier, vol. 38(9), pages 853-867, November.
    12. Arnstein Gjestland & David McArthur & Liv Osland & Inge Thorsen, 2011. "Relationships between housing prices and commuting flows," ERSA conference papers ersa10p906, European Regional Science Association.
    13. Ti-Ching Peng & Ying-Hui Chiang, 2015. "The non-linearity of hospitals' proximity on property prices: experiences from Taipei, Taiwan," Journal of Property Research, Taylor & Francis Journals, vol. 32(4), pages 341-361, December.
    14. Osland, Liv & Thorsen, Inge, 2005. "Effects on housing prices of urban attraction and labor market accessibility," Working Papers in Economics 17/05, University of Bergen, Department of Economics.
    15. Yiu, Chung Yim, 2011. "A spatial portfolio theory of household location choice," Journal of Transport Geography, Elsevier, vol. 19(4), pages 584-590.
    16. Blanca Arellano & Montserrat Moix & Josep Roca, 2011. "Towards a New Methodology to evaluate the Urban structure of the Metropolitan Systems; Chicago and Barcelona Metropolitan Areas as Examples," ERSA conference papers ersa11p1779, European Regional Science Association.
    17. Yunlong Gong & Peter Boelhouwer & Jan de Haan, 2016. "Interurban house price gradient: Effect of urban hierarchy distance on house prices," Urban Studies, Urban Studies Journal Limited, vol. 53(15), pages 3317-3335, November.
    18. Osland, Liv & Thorsen, Inge, 2007. "Testing for the impact of local spatial structure characteristics on house prices," Working Papers in Economics 15/07, University of Bergen, Department of Economics.
    19. Liv Osland & Gwilym Pryce, 2012. "Housing Prices and Multiple Employment Nodes: Is the Relationship Nonmonotonic?," Housing Studies, Taylor & Francis Journals, vol. 27(8), pages 1182-1208, November.
    20. Ducksu Seo & You Seok Chung & Youngsang Kwon, 2018. "Price Determinants of Affordable Apartments in Vietnam: Toward the Public–Private Partnerships for Sustainable Housing Development," Sustainability, MDPI, vol. 10(1), pages 1-17, January.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p492. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.