New German Highway Infrastructure and the Impacts on Residential Real Estate Prices

37 Pages Posted: 2 Mar 2021

See all articles by Jeffrey Cohen

Jeffrey Cohen

University of Connecticut - School of Business

Sandra Schaffner

RWI - Leibniz Institute for Economic Research

Date Written: January 23, 2021

Abstract

Germany’s 1990 reunification necessitated highway connections between an underdeveloped region and a western country. The 2009/2013 German Autobahn highway A38 completion/additions alleviated congestion, enhanced connectivity, and increased pollution/noise. Using German residential real estate price data spanning 2007-2017, we find shorter drive times to the A38 raised prices; and direct proximity lowered prices. Our results exceed connectivity estimates of a German local roads study and some Western European highway studies, due to A38 newly linking the east/west of Germany. Our highway estimates are in the mid-range of German transit studies, implying German transit may impact real estate prices more than highways.

Keywords: Real Estate Prices, Highways, Germany

JEL Classification: R4, R2

Suggested Citation

Cohen, Jeffrey and Schaffner, Sandra, New German Highway Infrastructure and the Impacts on Residential Real Estate Prices (January 23, 2021). Available at SSRN: https://ssrn.com/abstract=3772094 or http://dx.doi.org/10.2139/ssrn.3772094

Jeffrey Cohen (Contact Author)

University of Connecticut - School of Business ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Sandra Schaffner

RWI - Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

HOME PAGE: http://www.rwi-essen.de/schaffner

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