Residential Land Values in the Washington, DC Metro Area: New Insights from Big Data

52 Pages Posted: 21 Jan 2016 Last revised: 22 Jan 2016

See all articles by Morris A. Davis

Morris A. Davis

Rutgers Business School

Stephen D. Oliner

American Enterprise Institute

Edward Pinto

American Enterprise Institute (AEI)

Sankar Bokka

FNC, Inc

Date Written: January 21, 2016

Abstract

We use new property-level data to estimate the price of land from 2000 to 2013 for nearly the universe of detached single-family homes in the Washington, DC metro area and characterize the housing boom-bust cycle in land and house prices at a fine geography. The data show that land prices were more volatile than house prices everywhere, but especially so in the areas where land was inexpensive in 2000. We demonstrate that the change in the land share of house value during the boom was a significant predictor of the decline in house prices during the bust, highlighting the value of focusing on land in assessing house-price risk.

Keywords: Land, Housing, House Prices, Housing Boom and Bust, Financial Crisis

JEL Classification: C55, E32, R14, R23, R31, R32

Suggested Citation

Davis, Morris A. and Oliner, Stephen D. and Pinto, Edward and Bokka, Sankar, Residential Land Values in the Washington, DC Metro Area: New Insights from Big Data (January 21, 2016). Available at SSRN: https://ssrn.com/abstract=2718417 or http://dx.doi.org/10.2139/ssrn.2718417

Morris A. Davis (Contact Author)

Rutgers Business School ( email )

Rutgers Business School
One Washington Park #1092
Newark, NJ 07102
United States

Stephen D. Oliner

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/

Edward Pinto

American Enterprise Institute (AEI) ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States
240-423-2848 (Phone)

Sankar Bokka

FNC, Inc ( email )

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