Airport noise and house prices: A quasi-experimental design study

Zheng, Xian; Peng, Wenwei; Hu, Mingzhi

doi:10.1016/j.landusepol.2019.104287

Cited by 42 publications

(24 citation statements)

References 54 publications

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“…In economic studies, a true experiment using randomized control design may not be viable, but a quasi-experimental design that uses non-randomized control groups can provide a more robust test on causality [33]. Quasi-experiments have been used in recent housing research, but most of them are at the microeconomic level, such as the effects of accessibility [34], airport operations [35,36], and purchase restrictions [37] on house prices. Yet, no quasi-experiment study on the monetary policy hypothesis so far has been done.…”

Section: Literature Reviewmentioning

confidence: 99%

Why House Prices Increase in the COVID-19 Recession: A Five-Country Empirical Study on the Real Interest Rate Hypothesis

Yiu

2021

Urban Science

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There are substantial rebounds in house prices in many developed economies after the outbreak of COVID-19. It provides a special opportunity to test the real interest rate hypothesis empirically as a “synchronized” price rebound implies a common cause of house price hikes across the economies. This study conducts a panel regression analysis on five economies, namely Australia, Canada, European Union, New Zealand, the United Kingdom, and the United States of America, to test the hypothesis. The data range from 2017Q1 to 2021Q1. The results confirm that the real interest rate imposes a negative and significant effect on house price growth rate after controlling for economic growth factors, unemployment factors, and cross-country fixed effects. The empirical result of the five housing markets shows that a 1% fall in the real interest rate caused a 1.5% increase in house prices, ceteris paribus, in this period. It also provides casual evidence refuting the economic growth hypothesis and the migrant hypothesis in New Zealand. The results provide far-reaching practical implications on housing policy and on the ways forward to solve housing affordability problems.

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Section: Literature Reviewmentioning

confidence: 99%

Why House Prices Increase in the COVID-19 Recession: A Five-Country Empirical Study on the Real Interest Rate Hypothesis

Yiu

2021

Urban Science

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“…Airport impacts studies Economic (Appold, 2015) (Augustyniak, 2009) (Butler & Kiernan, 1986) (Basso, 2007) (Diaz Olariaga & Ávila Álvarez, 2015 (Fasone, Giuffrè & Maggiore, 2012) (Forsyth, 2006) (Gutiérrez et al, 1999) (Hanlon, 1995) (Dimitriou, 2018) (Kuper, Massacci, Shim & Williams, 2020) (Li andLoo, 2016) (Mense &Kholodilin, 2014) (Morimoto, 2019) (Pitfield, 1981) (Takebayashi, 2011) (Tosun, 2002) (Qin & Tian, 2019) Environmental (Chaouk, Pagliari & Moxon, 2020 (Gratton, Padhra, Rapsomanikis & Williams, 2020) (J. Torija, 2018) (Maeda, 1991) (Mense & Kholodilin, 2014) (Ren, Cao & Liu, 2018) (Sahrir, Bachok & Osman, 2014) (Zheng, Peng & Hu, 2020) Social (Akehurst, 1999) (Alpes, 2015) (Bogicevic, Bujisic, Bilgihan, Yang & Cobanoglu, 2017) (Halpern, 2012) (Rowe & Pitfield, 2018) (Pabedinskaitė & Akstinaitė, 2014) (Park & Ryu, 2019) (Sahrir, Bachok & Osman, 2014) (Tezel et al, 2019) (Wilke, Majumdar & Ochieng, 2015) Tourism (Doerr, Dorn, Gaebler & Potrafke, 2020)…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Methodological Review of impact studies of airports: A qualitative and quantitative proposal for the Airport of Málaga-Costa del Sol

Galeote

Mestanza

2021

invest. tur

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Airports have become fundamental axes of the economy of many countries. In Spain, the airports managed by Aena1 ended 2019 with more than 274.4 million passengers, which was 4.4% more than the previous year. They are not only important for tourism but also for other sectors that depend on imports and exports. For years, the impact measurements have included the IO tables, but we are now questioning whether they constitute the best measurement model. The research reveals that the main problem is the application of different methodologies used by airports and countries. For this reason, we propose a model to measure the economic impact of the Malaga-Costa del Sol Airport that incorporates the importance of the tourism. This study is conceived as a guide for studying the impacts of any airport around the world. The review reveals that the social accounting matrix with changes in the variables involved is the best available measurement model. The conclusions reflect that the qualitative point of view is necessary. This can provide data that, together with previous studies, will result in multidisciplinary research that will allow us to gain a much deeper understanding of these infrastructures. The conclusions have practical and theoretical implications for impact studies.

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“…Some studies demonstrate airports' positive impact on the residential real estate market. Zheng et al [55] investigated the dynamic effects of the disappearance of airport noise on house prices by a difference-in-differences (DID) model. This study found that the transfer of the Hong Kong Kai Tak Airport caused a 24% increase in property prices.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Most of the research presented in this literature review focuses on specific negative factors of airport location within cities' perimeters. As a rule, airport noise [50,55], environment pollution [42,58], and climate change [38] are regarded as the negative impact factors. However, the airport's negative impact may also result from changes in property use [33,59] and thus the property value level changes.…”

Section: Literature Reviewmentioning

confidence: 99%

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

2020

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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.

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Airport noise and house prices: A quasi-experimental design study

Cited by 42 publications

References 54 publications

Why House Prices Increase in the COVID-19 Recession: A Five-Country Empirical Study on the Real Interest Rate Hypothesis

Why House Prices Increase in the COVID-19 Recession: A Five-Country Empirical Study on the Real Interest Rate Hypothesis

Methodological Review of impact studies of airports: A qualitative and quantitative proposal for the Airport of Málaga-Costa del Sol

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

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