Neighborhood Quality and Housing Value: Evidence from Urban Micro Data

Abstract

<p>Using urban residential micro data from CHNS, this paper employs Hedonic Pricing Model to investigate the impact of Neighborhood Quality on housing value and its mechanism. We find that, Human Capitals measured by average schooling years and occupational diversity have significant positive effect while cultural capitals such as Ethnic Diversity have significant negative effect on housing value. Compared with the empirical results from developed counties, Social Capitals measured by length of tenure and own room rate have insignificant effect on housing value. In addition, having Kindergarten and Hospitals near the communities are positively correlated with the housing value while Internet cafe or transportation services are negative. We believe that these facts are closely related to the stage of economy transition and rapid urbanization in current China. The conclusions have important implications for the effective construction of harmonious commodities.</p

The spillover effect of senior neighbors on housing prices: Evidence from Beijing, China

“…Therefore, we expected that a high number of seniors in a neighborhood would lower housing prices. However, since residents prefer to live among high‐quality neighbors (Gibbons, 2003; Jun, 2020; Wang et al., 2012), we assumed that a high proportion of high‐quality seniors (high education level and worked in government institutions) might increase housing prices.…”

“…The socioeconomic characteristics of the neighborhood population have also received some attention. Some researchers have investigated the influence of neighborhood education levels and occupational diversity on housing prices (Gibbons, 2003; Jun, 2020; Wang et al., 2012). The spillover of knowledge, skills, or information in the neighborhood can significantly increase housing prices.…”

“…The issue that attracts scholars’ attention is the economic mechanism of neighborhood effect affecting housing prices, for example, the spillover effect of neighborhood population structure on housing prices (Bailey, 1966; Clapp et al., 2008). Scholars explored the quantitative characteristics of the neighborhood population, such as the number of ethnic minorities and socioeconomic characteristics, such as years of education and occupation (Clapp et al., 2008; Wang et al., 2012). Recent research has gradually focused on specific groups of people living in neighborhoods (Gibbons, 2003; Tyvimaa & Kamruzzaman, 2018).…”

Will Good Service Quality Promote Real Estate Value? Evidence from Beijing, China

“…First, good educational resources can affect real estate value [18]. Wang et al [19] found that human capital measured by average years of education has a significant positive effect on housing prices. Clapp et al [20] reported that the test scores of students in the community have become more and more important reference factors for choosing real estate in Connecticut, USA, while the demographic composition of the community has become less important.…”

Nonlinear Influence of Public Services on Urban Housing Prices: A Case Study of China

“…In terms of medical care, Wang et al's [24] research on several megacities in China finds that hospitals near communities are positively correlated with housing values; the farther away from the hospital, the lower the value of the house [25].…”