scholarly journals The Spatial and Temporal Decomposition of the Effect of Floods on Single-Family House Prices: A Laval, Canada Case Study

2021 ◽  
Vol 13 (9) ◽  
pp. 5088
Author(s):  
Maha AbdelHalim ◽  
Jean Dubé ◽  
Nicolas Devaux
Keyword(s):  
House Prices ◽  
Hedonic Pricing ◽  
Negotiation Process ◽  
Flood Event ◽  
Evaluation Procedure ◽  
Single Family ◽  
Hedonic Pricing Model ◽  
Negative Effect ◽  
Flooded Area ◽  
The Impact

This paper aims to estimate and decompose the spatial and temporal effect of a flood event occurring in the city of Laval in 1998 using a hedonic pricing model (HPM) based on a difference-in-differences (DID) estimator. The empirical investigation of the impact of flood as a natural disaster must take into account the fact that the negotiation process between buyers and sellers may well occur before the event. It is argued that the evaluation procedure needs to be adjusted to account for this reality because the estimation of the effects may otherwise be biased and isolate other effects. To test this hypothesis, the study focuses on transactions occurring between (1995 and 2001) and within designated floodplains to adequately isolate and decompose the impact of flood. The original database contains information on 252 single-family houses transactions. The results suggest that the estimation of the impact is time dependent, with a measured negative effect appearing several months after the flood, suggesting that the impact is hard to establish right after the event since transactions, and the final sale price, could have been fixed by negotiations well before the event. The statistical methodological framework of flood research should be adapted to account for the negotiation process occurring prior to the flood event to be able to correctly isolate the impact for the after event. The flooded area also needs to be precisely identified to be able to correctly estimate the flood impact on houses that have faced flood.

scholarly journals Measuring the Impact of Church Externalities on House Prices

2013 ◽  
Vol 16 (4) ◽  
pp. 53-68 ◽  
Author(s):  
Gabriel K. Babawale
Keyword(s):  
House Prices ◽  
Hedonic Pricing ◽  
Common Belief ◽  
Pricing Model ◽  
Negative Externalities ◽  
Bottom Line ◽  
Hedonic Pricing Model ◽  
Positive Externalities ◽  
Residential Properties ◽  
The Impact

This study extends literature that empirically investigates the impact of the externalities generated by churches on prices of nearby residential properties with particular reference to selected areas in Lagos, Nigeria; but with some implications for economic studies in other parts of the world The study hypothesized that the proximity of a church has nosignificant effect (positive or negative) on house prices. The hypothesis is tested with a standard hedonic pricing model using the net rents of 450 apartments (flats) across the study area. The results confirmed the more common belief that neighborhood churches, particularly the larger ones, impact on the values of nearby residential properties negatively. It is further revealed that where a more powerful positive externalities exists side-by-side, the effects of the negative externalities can be considerably tempered or completely overshadowed. The results bring to light the environmental, social and economic (the triple bottom line) implications of the externalities generated by neighborhood churches in the study area. It is expected to assist urban planners, the courts, mortgagees and real estate valuers in resolving the controversies on the nuisance versus amenity effects of neighborhood churches.

scholarly journals Evaluating the Impact of Floods on Housing Price Using a Spatial Matching Difference-In-Differences (SM-DID) Approach

2021 ◽  
Vol 13 (2) ◽  
pp. 804
Author(s):  
Jean Dubé ◽  
Maha AbdelHalim ◽  
Nicolas Devaux
Keyword(s):  
Housing Price ◽  
Hedonic Pricing ◽  
Environmental Amenities ◽  
Sale Price ◽  
Difference In Differences ◽  
Hedonic Pricing Model ◽  
The Difference ◽  
And Control ◽  
The Impact ◽  
The City

Many applications have relied on the hedonic pricing model (HPM) to measure the willingness-to-pay (WTP) for urban externalities and natural disasters. The classic HPM regresses housing price on a complete list of attributes/characteristics that include spatial or environmental amenities (or disamenities), such as floods, to retrieve the gradients of the market (marginal) WTP for such externalities. The aim of this paper is to propose an innovative methodological framework that extends the causal relations based on a spatial matching difference-in-differences (SM-DID) estimator, and which attempts to calculate the difference between sale price for similar goods within “treated” and “control” groups. To demonstrate the potential of the proposed spatial matching method, the researchers present an empirical investigation based on the case of a flood event recorded in the city of Laval (Québec, Canada) in 1998, using information on transactions occurring between 1995 and 2001. The research results show that the impact of flooding brings a negative premium on the housing price of about 20,000$ Canadian (CAN).

scholarly journals The Impact of Airport Proximity on Single-Family House Prices—Evidence from Poland

2020 ◽  
Vol 12 (19) ◽  
pp. 7928
Author(s):  
Mirosław Bełej ◽  
Radosław Cellmer ◽  
Michał Głuszak
Keyword(s):  
Negative Impact ◽  
House Prices ◽  
Research Result ◽  
External Noise ◽  
Multiple Regression Model ◽  
Geographical Information ◽  
Single Family ◽  
Spatial Autoregressive ◽  
The Impact ◽  
Family House

Airports in Poland are obliged to observe the sustainable development principle and therefore to reduce their environmental impact by creating so-called limited use areas (LUA) related to aircraft-generated noise. The research authors analyzed airports’ impact on the prices of single-family homes located in the vicinity of airports. The LUA is therefore defined as the area designated to study the airport’s specific impact on the single-family housing market. This is a formal limit which determines the examination of price changes and the decision-making conditions of market participants. This methodical approach is justified because no excessive noise is expected outside the LUA. Therefore, two markets in the vicinity of airports were examined. One is in an LUA which is closer to the airport, and the other market is outside the LUA where external noise effects are not present. Thus, we consider that real estate located outside the LUA is not subject to a significant negative impact from the airport. The study covered the Gdańsk Lech Walesa Airport and the Warsaw Chopin Airport in Poland in adjacent areas with the research time horizon of 2013–2017. The study examined single-family house prices. We used a time series analysis, a classic multiple regression model, a spatial autoregressive model, and geographically weighted regression models in our research. Additionally, Geographical Information System (GIS) tools were used to visualize the results of our study. The research result was to demonstrate different impact levels of airports on the prices of single-family houses located in limited-use areas in Gdańsk and Warsaw. This research carries significant implications for the general public and airports’ economic decisions in resolving conflicts between the airport and residential property owners in airports’ vicinities.

The Impact of Surrounding Land Use and Vegetation on Single-Family House Prices

10.1068/b3023 ◽  
2004 ◽  
Vol 31 (4) ◽  
pp. 539-567 ◽  
Author(s):  
Yan Kestens ◽  
Marius Thériault ◽  
François Des Rosiers
Keyword(s):  
Land Use ◽  
House Prices ◽  
Single Family ◽  
The Impact ◽  
Family House

scholarly journals MODELLING THE IMPACT OF WIND FARMS ON HOUSE PRICES IN THE UK

2008 ◽  
Vol 12 (4) ◽  
pp. 251-269 ◽  
Author(s):  
Sally Sims ◽  
Peter Dent ◽  
G. Reza Oskrochi
Keyword(s):  
Wind Farm ◽  
Negative Impact ◽  
House Prices ◽  
Turbine Blades ◽  
House Price ◽  
Wind Farms ◽  
Causal Link ◽  
Hedonic Pricing ◽  
The Uk ◽  
The Impact

This paper discusses the findings from a UK study to determine the likely impact of a wind farm on house prices using a hedonic pricing model. The Government's commitment to wind power has resulted in a massive increase in the number of wind farms sited in the UK. This has led to concerns that their visual and aural presence could have a negative impact on proximate house prices. This paper presents an analysis of 201sales transactions from houses situated within half a mile of a 16 turbine wind farm in Cornwall, UK. Whilst no causal link was established between the presence of the wind farm and house price, there was some evidence to suggest that both noise and flicker from the turbine blades could blight certain property and that the view of countryside enjoyed by the occupier had some value which may be affected by a wind farm. Santrauka Šiame darbe aptariami JK atlikto tyrimo rezultatai, kuriuo, taikant hedonistinį kainų modelį, siekta nustatyti galimą vėjo jėgainių poveikį namų kainoms. Vyriausybės parama vėjo energijai paskatino naujo elemento, vėjo jėgainės, atsiradimą aplinkoje; susirūpinta, ar vėjo jėgainių vaizdas ir garsas galėtų neigiamai paveikti namų kainas. Šiame darbe nagrinėjamas 201 prekybinis sandoris, susijęs su namais, pusę mylios nutolusiais nuo Bears Down, Kornvalyje (JK), esančio 16 vėjo jėgainių ūkio. Nors priežastinis ryšys tarp vėjo jėgainių ir namų kainos nepastebėtas, yra įrodymų, kad jėgainės keliamas triukšmas ir menčių mirgėjimas kai kuriems nekilnojamojo turto objektams galėtų pakenkti ir kad gyventojui patikęs kaimo vaizdas gali tapti nebepatrauklus.

Price effects of surface street traffic on residential property

2014 ◽  
Vol 7 (2) ◽  
pp. 189-203 ◽  
Author(s):  
James E. Larsen ◽  
John P. Blair
Keyword(s):  
Residential Property ◽  
Single Family ◽  
Content Type ◽  
Arterial Streets ◽  
Price Effects ◽  
Residential Properties ◽  
Negative Effect ◽  
Street Traffic ◽  
The Impact ◽  
Family House

Purpose – The purpose of this study is to gauge and compare the impact of surface street traffic externalities on residential properties. Limited previous research indicates that negative externalities dominate for single-family houses. Our objective is to verify that this result applies to our sample, and to determine if the same result extends to multi-unit rental properties. Design/methodology/approach – Hedonic regression is used to analyze data from 9,680 single-family house transactions and 455 multi-unit rental properties to measure the influence of surface street traffic on the price of the two property types. Findings – Houses located adjacent to an arterial street sold at a 7.8 per cent discount, on average, compared to similar houses located on collector streets. Limiting the analysis to houses adjacent to an arterial street (where traffic counts were available), price and traffic count are negatively related. The results for multi-unit rental dwellings are dramatically different. Multi-unit properties adjacent to an arterial street sold at a 13.75 per cent premium compared to similar properties on collector streets, and when limiting the analysis to properties on arterial streets, no significant relationship was detected between price and traffic volume. Originality/value – This is the first empirical study of the influence of surface street traffic on both single-family houses and multi-unit rental residential property. Evidence is provided that traffic externalities impact the two types of properties quite differently. To the extent that this result applies to other locations, the authors suggest planners may be able to use such information to reduce the negative effect of traffic externalities on residential property associated with changes that will increase traffic flow.

An Empirical Analysis of the Effect of Sub-Divisions of American Viticultural Areas on Wine Prices: A Hedonic Study of Napa Valley

2020 ◽  
Vol 15 (3) ◽  
pp. 312-329
Author(s):  
Grant Bartlett Keating
Keyword(s):  
Hedonic Pricing ◽  
Pricing Model ◽  
Price Effect ◽  
Wine Grapes ◽  
Hedonic Pricing Model ◽  
Napa Valley ◽  
Price Effects ◽  
The Individual ◽  
The Impact ◽  
Unique Dataset

AbstractAmerican Viticultural Areas (AVAs) are descriptors of where wine grapes are grown that are designed to capture qualities unique to the wine and to influence its price. Sub-AVAs are sub-divisions of well-known AVAs designed to have the same effect. In this paper, I study the impact of the Napa Valley Sub-AVA system on the pricing and rating of Napa Valley wines. The analysis utilizes a primary hedonic pricing model to isolate both the individual Sub-AVA's price effect and the system's cumulative price effect. This study uses a unique dataset of 5,017 Napa Valley wines reviewed by the Connoisseurs’ Guide to California Wine over the 10-year period from 2004–2013. Estimated price effects persist even after controlling for rating differences, implying that consumers value the wines of sub-AVA's independently of critics’ ratings. These results indicate that Sub-AVAs deliver a more substantial price effect than previous literature has suggested. (JEL Classifications: C01, L10, L66, O13)

Estimating the Foreclosure Discount in Financially Distressed Hotels

2020 ◽  
pp. 193896552092965
Author(s):  
Amrik Singh
Keyword(s):  
Real Estate ◽  
Financial Distress ◽  
Hedonic Pricing ◽  
Pricing Model ◽  
Hedonic Pricing Model ◽  
Short Sale ◽  
Transaction Prices ◽  
Negative Effect ◽  
Financially Distressed

This study investigates the magnitude of the distress sale and foreclosure sale discount in financially distressed hotels by determining the influence of financial distress conditions on hotel transaction prices. Using a hedonic pricing model and a sample of 6,340 distressed and non-distressed transaction prices from 2008 to 2016, the study’s results show a significantly negative effect of financial distress on the pricing of distressed hotels. In particular, the estimated discount is 33% for an auction/trustee sale, 30% for a short sale, 42% for a foreclosure sale, and 44% for a real estate owned (REO) sale, all relative to non-distressed normal market sales.

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