Commercial and Residential Land Prices Across the United States

52 Pages Posted: 11 Mar 2011  

Stephen D. Oliner

American Enterprise Institute

Joseph Nichols

Board of Governors of the Federal Reserve System

Michael R. Mulhall

J.P. Morgan Chase & Co.

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

Oliner, Stephen D. and Nichols, Joseph and Mulhall, Michael R., Commercial and Residential Land Prices Across the United States (February 2010). FEDS Working Paper No. 16. Available at SSRN: https://ssrn.com/abstract=1783627 or http://dx.doi.org/10.2139/ssrn.1783627

Stephen D. Oliner (Contact Author)

American Enterprise Institute ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States
2024195205 (Phone)

HOME PAGE: http://www.aei.org/scholar/stephen-d-oliner/

Joseph Nichols

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States
202-452-2983 (Phone)

Michael R. Mulhall

J.P. Morgan Chase & Co. ( email )

60 Wall St.
New York, NY 10260
United States

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