Full Citation

Title: On the Relation Between Local Amenities and House Price Dynamics

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN:

DOI: 10.1111/1540-6229.12170

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Abstract: This study explores the extent to which local amenities are related to house price volatility, returns and risk‐adjusted returns across 238 MSAs. We find strong evidence that high amenity areas experience greater price volatility. In regards to returns, high amenity areas experience greater (lower) real returns in appreciating (depreciating) markets. However, high amenity areas experience little to no abnormal risk‐adjusted returns. Results from the study are robust to an endogenous treatment of amenities and land supply elasticity. Overall, we conclude that the desirability of a metropolitan area is a significant channel through which land values drive house price dynamics.

Url: http://doi.wiley.com/10.1111/1540-6229.12170

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Authors: Beracha, Eli; Gilbert, Ben T; Kjorstad, Tyler; Womack, Kiplan

Periodical (Full): Real Estate Economics

Issue: 3

Volume: 46

Pages: 612-654

Data Collections: IPUMS USA

Topics: Housing and Segregation, Other

Countries: