Factors Affecting Housing Modifications and Housing Pricing: A Case Study of Four Residential Neighborhoods in Haifa, Israel

38 Pages Posted: 27 Dec 2006

See all articles by Boris A. Portnov

Boris A. Portnov

University of Haifa

Yakov Odish

Hebrew University of Jerusalem,

Larissa Fleishman

Hebrew University of Jerusalem,

Abstract

The relationships among three groups of variables—environmental conditions in residential neighborhoods, postoccupancy housing changes and modifications (HCMs), and the market values of residential properties—are investigated. While traditional hedonic modeling assumes the existence of direct links between environmental factors and property values, this paper suggests that such links are indirect and work through the investment decisions of homeowners, who choose to invest (or not to invest) in the maintenance and/or expansion of their properties. To verify this assumption, HCMs accumulated in four residential neighborhoods in Haifa, Israel are analyzed. The findings indicate a fairly strong association between environmental factors, building characteristics, rehabilitation activity and property values in these neighborhoods. The paper suggests an extra benefit for improving the environment, due to the dynamic process that may cause further investment.

Keywords: environmental, residential, housing changes, property value, HCM, rehabilitation

JEL Classification: R11, R14, P36, P46, O53

Suggested Citation

Portnov, Boris A. and Odish, Yakov and Fleishman, Larissa, Factors Affecting Housing Modifications and Housing Pricing: A Case Study of Four Residential Neighborhoods in Haifa, Israel. Journal of Real Estate Research, Vol. 27, No. 4, 2006, Available at SSRN: https://ssrn.com/abstract=953758

Boris A. Portnov (Contact Author)

University of Haifa ( email )

Mount Carmel
Haifa, 31905
Israel

Yakov Odish

Hebrew University of Jerusalem, ( email )

Mount Scopus
Jerusalem, Jerusalem 91905
Israel

Larissa Fleishman

Hebrew University of Jerusalem, ( email )

Mount Scopus
Jerusalem, Jerusalem 91905
Israel

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