The Value of Proximity to Water in Residential Areas

Summary This paper incorporates text data from MLS listings into a hedonic pricing model. We show that the comments section of the MLS, which is populated by real estate agents who arguably have the most local market knowledge and know what homebuyers value, provides information that improves the performance of both in‐sample and out‐of‐sample pricing estimates. Text is found to decrease pricing error by more than 25%. Information from text is incorporated into a linear model using a tokenization approach. By doing so, the implicit prices for various words and phrases are estimated. The estimation focuses on simultaneous variable selection and estimation for linear models in the presence of a large number of variables using a penalized regression. The LASSO procedure and variants are shown to outperform least‐squares in out‐of‐sample testing. Copyright © 2016 John Wiley & Sons, Ltd.

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“…() and Rouwendal et al. () find that water access and coastline significantly influence property prices. Benson et al.…”

Section: Literature Reviewmentioning

confidence: 98%

Textual Analysis in Real Estate

Nowak

Smith

2016

J. Appl. Econ.

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“…In the UK, a growing body of seminal research investigated the economic value of urban design. The research ranges from the value of street public realm improvement (CABE, 2007;Transport for London, 2011), to the social and environmental value of park and public space (CABE Space, 2003), the value of green space (GLA Economics, 2003;2010;Dunse, et al, 2007;Rogers, et al, 2012;CABE Space, 2009;Jim & Chen, 2010), the value of blue space (Garrod & Willis, 1994;Fisher, 1999;Rouwendal , et al, 2014;Goetgeluk, et al, 2005), the value of station investment (Network Rail, 2011), the value of housing and urban layout (CABE, ODPM, Design for Homes, 2003; The Prince's Foundation for the Built Environment, 2007;Chiaradia, et al, 2013), the value of mixed use street (Jones, et al, 2007;Chiaradia, et al, 2012), the value of urban design (CABE, UCL, DETR, 2001;British Council for Offices, 2006), and more recently resilient urban form, governance and the creation of long term value (Grosvenor, 2013). All of these studies link "delicate design" characteristics of the built environment to economic value.…”

Section: Beyond Tod Exploring Node-place Effect Of Metro Stations Inmentioning

confidence: 99%

A Configurational Accessibility Study of Road and Metro Network in Shanghai, China

2015

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Accessibility determination has become one of the key issues to interpret the relationship between urban form and travel pattern in metropolitan areas. Although the use of urban planning and design and associated accessibility influence travel makes intuitive sense, researchers have found it difficult to provide clear evidence of the influence of urban form. At the same time, it is generally recognized that land use patterns and transportation patterns are closely related to each other through accessibility change. The spatial organization of human activities creates a pattern of personal travel and goods transport, thus influences the mobility behaviour of actors such as households and firms. Conversely the availability of infrastructure makes certain locations more or less accessible. This paper identifies spatially desegregated micro-macro configurations of structural flow derived from accessibility analysis and their relationships with urban block size, road and metro-line network design, metro stations and bus stop locations, commercial land use locations distribution and station usage in Shanghai, China. Using GIS and spatial Design Network Analysis (sDNA) software to perform multi-level accessibility analysis of each link in each network, this revealed that most of the metro stations, bus stops and commercial land use are co-located on parts of the road network with the highest level of micro to macro accessibility. This indicates a 'coupling multiplier effect' between metro stations, commercial land use and multi-level multi network structural flow derived from accessibility analysis. Moreover block size is revealed as an important variable. These findings suggest the possibility of strategically appraising the impact of block size and land use planning on micro-macro accessibility change due to transportation system change and thus further the potential for systematically guiding transport oriented development planning and design place making. commercial land use and multi-level multi network structural flow derived from accessibility analysis. Moreover block size is revealed as an important variable. These findings suggest the possibility of evaluating and appraising strategically the effectiveness of block size and land use planning in relation to micro-macro accessibility change due to transportation system change and thus further the potential for systematically guiding transport oriented development planning and design place making.

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“…The effect of public transport accessibility on real estate prices is studied e.g. byCordera et al (2018) andDubé et al (2014).16 AlsoRouwendal et al (2014) study explicitly the value of proximity to water and find an increase in price by 5%.…”

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confidence: 99%

Die Auswirkungen von unerwarteten Hochwasserereignissen und Anpassungsmaßnahmen auf Grundstückspreise

Häse

Hirte

2023

Rev Reg Res

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Associated with climate change are the rising frequency, probability, and intensity of natural hazards, as stated by IPCC (2014). To contribute to the evaluation of climate change consequences, we study the impact of river floods caused by torrential rain periods, which are supposed to become and already are one of the major future challenges. Since subsequent flood and adaptation measures are usually interdependent, identifying causal effects is the main challenge. Therefore we investigate a sequence of river floods and subsequent adaption measures in a natural experiment setting. Our study area is the city of Dresden, Germany in the time period from 2000 until 2017. Remarkable in this setting is the exogeneity of the first flood event in 2002 that hit the city unexpectedly after 60 years without considerable flood events. We use a complete set of lot transactions from 2000 until 2017 to study the effect of these events on lot prices. The basis of our identification strategy is a Difference-in-Differences design in which we control for an unstable assignment to treatment and control group. Additionally we consider the heterogeneity of the treatment, which is caused by the varying intensity levels during a flood. It shows that flood risk is incorporated into lot prices only after awareness is risen due to a sudden flood event and that a higher expected intensity increases discounts. A long-term effect can be verified once we control for adaption, such as public protection measures.

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The Value of Proximity to Water in Residential Areas

Cited by 3 publications

References 15 publications

Textual Analysis in Real Estate

Textual Analysis in Real Estate

A Configurational Accessibility Study of Road and Metro Network in Shanghai, China

Die Auswirkungen von unerwarteten Hochwasserereignissen und Anpassungsmaßnahmen auf Grundstückspreise

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