The effect of new residential construction on housing prices

Zahirovich-Herbert, Velma; Gibler, Karen M.

doi:10.1016/j.jhe.2014.06.003

Cited by 72 publications

(47 citation statements)

References 41 publications

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“…The improvement of several macroeconomic indicators in several regions is a reflection of increased demand, and in the era of globalization by entrepreneurs it should be taken into account that the majority of investments flows into the country with the highest level of development and favourable investment environment. Encouraging new construction within urban areas is promoted as a powerful tool for improving efficiency in the provision of mass transit, utilities and services while saving rural open space, that is expected to remove negative externalities, improving the individual parcels on which development occurs, and by creating spillover effects that increase the value of surrounding properties [37]. For future researches more country groups are planned to be analyzed, by applying qualitative research methods as well.…”

Section: Discussionmentioning

confidence: 99%

Construction management - challenges, influencing factors and importance of investment climate

Kauškale

Geipele

2015

2015 International Conference on Industrial Engineering and Operations Management (IEOM)

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The construction companies as well as other companies operating in the real estate market are facing a number of challenges -both in internal and external environments. At the same time, the industry presents several options. The objective of the study is to identify the construction sector management problems by exploring the real estate market and construction industry in Latvia, while comparing the situation in the Baltic States. The study approaches also the macroeconomic problems and a number of related issues that may be useful to the management of the companies in the construction industry and the real estate market. The comparative, statistical, data processing and analysis, as well as historical methods have been used in the study. Real estate market is cyclical -the development of real estate market affects the real estate price fluctuations, construction cost price fluctuations and changes in the economic situation in general, thus creating a number of challenges to market development and investment decision-making, so it is necessary to pay close attention to the construction industry and real estate market research.

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Section: Discussionmentioning

confidence: 99%

Construction management - challenges, influencing factors and importance of investment climate

Kauškale

Geipele

2015

2015 International Conference on Industrial Engineering and Operations Management (IEOM)

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“…Helms () models the spatial interdependence of households′ renovation decisions, and with detailed block‐level data for Chicago finds strong empirical evidence that endogenous neighborhood effects exist, as expected. In a similar work, Zahirovich‐Herbert and Gibler () find that the construction of a cluster of larger than average size houses carries a small premium on existing house prices, with the effect being strongest when the new construction is located within one‐quarter of a mile. Duarte et al .…”

Section: Literature Reviewmentioning

confidence: 93%

Reflected Glory Versus Repulsive Envy: How Do the Smiths Feel About the House of the Joneses?*

Nanda

Yeh

2016

Asian Economic Journal

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A key question raised regarding conspicuous consumption is whether such consumption leads to positive or negative net externalities. The present paper examines how the presence of luxury and expensive properties within a local area affects the house prices in Taipei City. Positive externalities may be associated with improved urban amenities or reflected glory. Negative externalities may be associated with the adverse reference group effect; that is, repulsive envy. The paper discusses the spillover effects due to changes in neighborhood's housing characteristics, and shows significant spatial patterns in house prices and the importance of socioeconomic influences on house prices.

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“…The supply effect could be either direct if the market segment is the same or indirect if filtering through submarkets occurs. Together, the supply effect and the amenity effect could lead to reduced property values, thus resulting in a loss for the existing homeowners (Ooi and Le, 2013;Zahirovich-Herbert and Gibler, 2014). Glaeser (2011) denounces the Nimbyism (rather than Yimbyism, the contrarian view that was formed in opposition to Nimbyism) that accompanies infill because it can hinder the construction of new houses, increase house prices and create cities that are available only to rich people.…”

Section: Definitions Of Infill Developmentmentioning

confidence: 99%

NIMBYs for the rich and YIMBYs for the poor: analyzing the property price effects of infill development

Brunes

Hermansson

Song

et al. 2020

JERER

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A combination of strong urbanization and shortage of land in many European city areas prompts an impetus of infill development, with current residents often raising concerns that infill development leads to lower nearby property prices. The aim of this paper is to analyze how nearby property prices are affected by new construction projects in Stockholm, Sweden. We use a difference-in-difference specification in a hedonic model, and our sample consists of more than 40,000 observations over the period 2005-2013. Our results are robust and indicate that house prices in nearby areas increase following the completion of infill development. Our results also indicate that infill development only has a positive spillover effect on nearby house prices only in areas with lower incomes, more public housing units and more inhabitants born abroad.

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The effect of new residential construction on housing prices

Cited by 72 publications

References 41 publications

Construction management - challenges, influencing factors and importance of investment climate

Construction management - challenges, influencing factors and importance of investment climate

Reflected Glory Versus Repulsive Envy: How Do the Smiths Feel About the House of the Joneses?*

NIMBYs for the rich and YIMBYs for the poor: analyzing the property price effects of infill development

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