Measuring the Importance of Location in House Price Appreciation

J. OF URBAN ECONOMICS

Posted: 19 Jun 1998

See all articles by Wayne R. Archer

Wayne R. Archer

University of Florida - Warrington College of Business Administration

Dean H. Gatzlaff

Florida State University

David C. Ling

University of Florida - Warrington College of Business Administration

Abstract

This paper examines the variation in the rates of house price appreciation within an individual metropolitan market. A methodology is developed to examine the locational variation in house price changes in Dade County (Miami) Florida, from 1971 to 1992. House price appreciation appears to be somewhat spatially related; that is, it varies by municipality, with distance from the CBD, with local changes in population and housing units and by ethnic mix. However, these relationships have minimal explanatory power. Controlling for the census tract group location of each home explains only around 12 percent of the (residual) variation in the appreciation of individual homes that is not explained by metropolitan-wide changes in house prices. The effect of tract group location appears to be dominated by the idiosyncratic influences of individual homes and their immediate environments.

JEL Classification: R30

Suggested Citation

Archer, Wayne R. and Gatzlaff, Dean H. and Ling, David Curtis, Measuring the Importance of Location in House Price Appreciation. J. OF URBAN ECONOMICS, Available at SSRN: https://ssrn.com/abstract=9064

Wayne R. Archer

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States
352-392-1330 (Phone)
352-392-0301 (Fax)

Dean H. Gatzlaff (Contact Author)

Florida State University ( email )

College of Business, Center for Real Estate
821 Academic Way, Rovetta Business Bldg
Tallahassee, FL 32306-1110
United States
850-644-4071 (Phone)
850-644-4077 (Fax)

David Curtis Ling

University of Florida - Warrington College of Business Administration ( email )

P.O. Box 117168
Gainesville, FL 32611
United States
352-392-9307 (Phone)
352-392-0301 (Fax)

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