Commercial and Residential Land Prices Across the United States
52 Pages Posted: 11 Mar 2011
Date Written: February 2010
Abstract
We use a national dataset of land sales to construct land price indexes for 23 MSAs in the United States and for the aggregate of those MSAs. We construct the price indexes by estimating hedonic regressions with a large sample of land transactions dating back to the mid-1990s. The regressions feature a flexible method of controlling for spatial price patterns within an MSA. The resulting price indexes show a dramatic increase in both commercial and residential land prices over several years prior to their peak in 2006-07 and a steep descent since then. These fluctuations in land prices are considerably larger than those in well-known indexes of commercial real estate and house prices. Because those existing indexes price a bundle of land and structures, this comparison implies that land prices have been more volatile than structures prices over this period.
Keywords: Price index, Land, Residential, Commercial
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Price and Quantity of Residential Land in the United States
-
The Price and Quantity of Residential Land in the United States
-
Intermediate Inputs and Sectoral Comovement in the Business Cycle
By Andreas Hornstein and Jack Praschnik
-
The Price of Residential Land in Large U.S. Cities
By Morris A. Davis and Michael Palumbo
-
Housing, Home Production, and the Equity and Value Premium Puzzles
By Morris A. Davis and Robert F. Martin
-
The Price of Land in the New York Metropolitan Area
By Andrew Haughwout, James Orr, ...