Bourassa, Steven C.; Hoesli, Martin. (2022). Hedonic, Residual, and Matching Methods for Residential Land Valuation. Journal Of Housing Economics, 58.
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Abstract
• Our first method involves a hedonic model estimated for sales of vacant lots. • Another method depreciates improvements, obtaining land value as a residual. • Our third approach matches the sales of vacant and subsequently developed lots. • This allows us to estimate a hedonic model of land leverage (the ratio of land to total property value) for improved properties. • We conclude that the third approach is the most promising of the three methods. Accurate estimates of land values on a property-by-property basis are an important requirement for the effective implementation of land-based property taxes. We compare hedonic, residual, and matching techniques for mass appraisal of residential land values, using data from Maricopa County, Arizona. The first method involves a hedonic valuation model estimated for transactions of vacant lots. The second approach subtracts the depreciated cost of improvements from the value of improved properties to obtain land value as a residual. The third approach matches the sales of vacant lots with subsequent sales of the same properties once they have been developed. For each pair, we use a land price index to inflate the land price to the time of the improved property transaction and then calculate land leverage (the ratio of land to total property value). A hedonic model is estimated and used to predict land leverage for all improved properties. We conclude that the matching approach is the most promising of the methods considered. [ABSTRACT FROM AUTHOR]; Copyright of Journal of Housing Economics is the property of Academic Press Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Keywords
Hedonic Method; Land Leverage; Land Valuation; Matching Approach; Residual Approach
Acolin, Arthur;hoek-smit, Marja;green, Richard K. (2022). Measuring the Housing Sector’s Contribution to GDP in Emerging Market Countries. International Journal Of Housing Markets And Analysis, 15(5), 977-994.
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Abstract
Purpose > This paper aims to document the economic importance of the housing sector, as measured by its contribution to gross domestic product (GDP), which is not fully recognized. In response to the joint economic and health crises caused by the COVID-19 pandemic, there is an opportunity for emerging market countries to develop and implement inclusive housing strategies that stimulate the economy and improve community health outcomes. However, so far housing does not feature prominently in the recovery plans of many emerging market countries. Design/methodology/approach > This paper uses national account data and informal housing estimates for 11 emerging market economies to estimate the contribution of housing investments and housing services to the GDP of these countries. Findings > This paper finds that the combined contribution of housing investments and housing services represents between 6.9% and 18.5% of GDP, averaging 13.1% in the countries with information about both. This puts the housing sector roughly on par with other key sectors such as manufacturing. In addition, if the informal housing sector is undercounted in the official national account figures used in this analysis by 50% or 100%, for example, then the true averages of housing investments and housing services’ contribution to GDP would increase to 14.3% or 16.1% of GDP, respectively. Research limitations/implications > Further efforts to improve data collection about housing investments and consumption, particularly imputed rent for owner occupiers and informal activity require national government to conduct regular household and housing surveys. Researcher can help make these surveys more robust and leverage new data sources such as scraped housing price and rent data to complement traditional surveys. Better data are needed in order to capture housing contribution to the economy. Practical implications > The size of the housing sector and its impact in terms of employment and community resilience indicate the potential of inclusive housing investments to both serve short-term economic stimulus and increase long-term community resilience. Originality/value > The role of housing in the economy is often limited to housing investment, despite the importance of housing services and well-documented methodologies to include them. This analysis highlights the importance of housing to the economy of emerging market countries (in addition to all the non-GDP related impact of housing on welfare) and indicate data limitation that need to be addressed to further strengthen the case for focusing on housing as part of economic recovery plans.
Keywords
Pandemics; Economic Importance; Investments; Housing; Sanitation; Recovery; International Organizations; Covid-19; Economic Growth; Data Collection; Economic Indicators; Economics; Housing Conditions; Economic Policy; Economic Conditions; Market Economies; Resilience; Low Income Groups; Economic Activity; Consumption; Emerging Markets; Earthquakes; Surveys; Gross Domestic Product--gdp; Coronaviruses; Affordable Housing; Economic Development; Informal Economy; Households; Recovery Plans; Disease Transmission; Africa; South Africa; India
Ramiller, Alex; Acolin, Arthur; Walter, Rebecca J.; Wang, Ruoniu. (2022). Moving to Shared Equity: Locational Outcomes for Households in Shared Equity Homeownership Programs. Housing Studies, 44586.
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Abstract
Abstract The impact of U.S. housing policy on household locational outcomes has primarily been studied in the context of rental housing assistance programs, but the impact of alternative homeownership models is less fully explored. In this study, we assess residential trajectories for households that have participated in shared-equity homeownership (SEH) programs such as Community Land Trusts and Limited Equity Housing Cooperatives. We examine changes in neighborhood characteristics that occur when households enter and exit SEH units, and compare those outcomes with similar households that entered traditional homeownership or continued to rent. We find that while entering SEH is associated with decreases in neighborhood opportunity measures, exiting SEH is associated with improvements in key measures including lower concentrations of poverty. We conclude that while entering SEH may entail moving to lower-opportunity neighborhoods, participation in SEH programs increases the long-term economic and socio-spatial mobility of participating households by enabling them to access a broader array of neighborhood contexts in their subsequent move. [ABSTRACT FROM AUTHOR]; Copyright of Housing Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Keywords
Community Land Trusts; Geographies Of Opportunity; Locational Outcomes; Residential Mobility; Shared-equity Homeownership
Acolin, Arthur; Wachter, Susan. (2017). Opportunity and Housing Access. Cityscape, 19(1), 135 – 150.
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Abstract
This article examines the relationship between employment opportunity and housing affordability. Access to locations with high-productivity jobs is increasingly limited by regional housing affordability barriers. Recent articles demonstrate a new regional divergence in access to high-productivity regions accompanied by declines in worker mobility associated with affordability barriers. We update these findings and discuss their long-term implications for economic opportunity and intergenerational welfare. We show that areas, from which lower-income households are increasingly priced out, are also more likely to have higher levels of intergenerational mobility. Access to opportunity also continues to be challenged within metropolitan areas as the gentrification of downtown neighborhoods is accompanied by an increase in concentrated poverty in outlying city neighborhoods and inner ring suburbs. These trends on regional and local scales derive from the increased importance of place in the knowledge-based economy and interact to reinforce growing spatial inequality. We conclude with a discussion of the importance of identifying place-based solutions to counter growing spatial inequality of opportunity.]
Ruoniu (Vince) Wang is an Assistant Professor in the Runstad Department of Real Estate in the College of Built Environments at the University of Washington. He studies spatial justice and inclusive communities, including their impacts reflected in the built environment, human behaviors, and policy interventions. Vince joined the University of Washington after serving six years as the research manager and director in a national non-profit organization Grounded Solutions Network. He has designed and conducted a U.S. Census of inclusionary housing policies, a U.S. census of community land trusts, and a national performance evaluation of shared equity homeownership programs. His research expands to policy evaluation for the two largest federal assisted housing rental programs in the U.S.: the Low-Income Housing Tax Credit program and the Housing Choice Voucher program. Vince grounds his research with applied tools to democratize data for low-income communities.
Rehm, Colin D.; Moudon, Anne V.; Hurvitz, Philip M.; Drewnowski, Adam. (2012). Residential Property Values are Associated with Obesity among Women in King County, WA, USA. Social Science & Medicine, 75(3), 491 – 495.
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Abstract
Studies of social determinants of weight and health in the US have typically relied on self-reported education and incomes as the two primary measures of socioeconomic status (SES). The assessed value of one's home, an important component of wealth, may be a better measure of the underlying SES construct and a better predictor of obesity. The Seattle Obesity Study (SOS), conducted in 2008-9, was a cross-sectional random digit dial telephone survey of 2001 adults in King County, Washington State, US. Participants' addresses were geocoded and residential property values for each tax parcel were obtained from the county tax assessor's database. Prevalence ratios of obesity by property values, education, and household income were estimated separately for women and men, after adjusting for age, race/ethnicity, household size, employment status and home ownership. Among women, the inverse association between property values and obesity was very strong and independent of other SES factors. Women in the bottom quartile of property values were 3.4 times more likely to be obese than women in the top quartile. No association between property values and obesity was observed for men. The present data strengthen the evidence for a social gradient in obesity among women. Property values may represent a novel and objective measure of SES at the individual level in the US. Measures based on tax assessment data will provide a valuable resource for future health studies. (C) 2012 Elsevier Ltd. All rights reserved.
Keywords
Communities; Employment; Income; Obesity; Poisson Distribution; Probability Theory; Research Funding; Self-evaluation; Sex Distribution; Social Classes; Statistics; Surveys; Data Analysis; Educational Attainment; Cross-sectional Method; Data Analysis Software; Descriptive Statistics; Washington (state); Health Status Disparities; Health Surveys; Social Class; Socioeconomic Factors; Usa; Women; Body-mass Index; Socioeconomic-status; Aged Men; Health; Weight; Disparities; Overweight; Disease; Poverty; Height
Choi, Kunhee; Lee, Hyun Woo; Mao, Zhuting; Lavy, Sarel; Ryoo, Boong Yeol. (2016). Environmental, Economic, and Social Implications of Highway Concrete Rehabilitation Alternatives. Journal Of Construction Engineering And Management, 142(2).
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Abstract
Currently, there is no comprehensive benchmark of life-cycle assessment for the rigid pavement alternatives for highway rehabilitation. To fill this gap, the major objective of this study is to investigate the environmental, economic, and social impacts of the three most widely adopted rigid pavement choices through a life-cycle assessment approach with custom-built economic input-output life-cycle assessment (EIO-LCA) models. Quantity takeoffs were performed for each alternative assuming a 1-lane-km highway rehabilitation. Subsequently, the construction costs of each alternative were computed in order to determine the present values for a life span of 50years, while at the same time accounting for a different life expectancy for each pavement rehabilitation strategy. The present values were then incorporated into a corresponding EIO-LCA model. The results clearly indicate that continuously reinforced concrete pavement (CRCP) is the most sustainable choice and much preferable to the other alternatives for minimizing negative environmental, economic and social impacts from the life-cycle perspective. This finding champions a wider adoption of CRCP for future sustainable transportation infrastructure development projects, as CRCP's relatively high initial construction cost can be recouped by long-term sustained benefits. The results and findings of this study can serve as a solid foundation for industry practitioners and decision-makers to make better-informed project decisions when choosing the most sustainable pavement alternatives from a life-cycle perspective. (C) 2015 American Society of Civil Engineers.
Keywords
Construction Industry; Environmental Management; Life Cycle Costing; Product Life Cycle Management; Project Management; Reinforced Concrete; Road Building; Socio-economic Effects; Sustainable Development; Economic Implications; Environmental Implications; Industry Practitioners; Sustainable Transportation Infrastructure Development Projects; Continuously Reinforced Concrete Pavement; Crcp; Eio-lca Model; Life Span; Construction Costs; Custom-built Economic Input-output Life-cycle Assessment Models; Rigid Pavement Alternatives; Highway Concrete Rehabilitation Alternatives; Life-cycle Assessment Approach; Social Implications; Life-cycle Assessment; Pavement; Asphalt; Pavement Rehabilitation; Environmental Assessment; Economic Factors; Land Use
Moudon, Anne Vernez. (2019). Framing the Question: Is Shrinking Good or Bad? Journal Of Urban Design, 24(1), 66 – 68.
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Keywords
Urban Planning; Unemployment; Cost Of Living; Balance Of Trade; Medical Care; Economic Development; Demography; Decision Making; Framing
Aziz, Ahmed M. Abdel. (2021). The Practice of Roadway Safety Management in Public-Private Partnerships. Journal Of Construction Engineering And Management, 147(12).
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Abstract
As a matter of course, the private party in public-private partnerships (PPPs) assumes the responsibility for roadway safety management (RSM). However, because most PPPs are performance-based, public highway agencies must articulate the specifications and methods they develop to enforce RSM practices. Despite the increased interest in PPPs in recent decades, little has been published on developing and propagating the RSM practices used with this delivery system. To fill this research gap and explore RSM practices in PPPs, this work took a synthesis research approach, using content analysis to critically review and analyze 16 PPP agreements in seven states and provinces leading in PPP contracting in North America. The study discovered several methods and organized them under five mechanisms: Mechanism 1, integrating roadway safety into project performance specifications and initiating new tools such as safety compliance orders; Mechanism 2, imposing nonconformance monetary deductions based on point and classification systems; Mechanism 3, regulating safety payments on the basis of crash statistics; Mechanism 4, promoting safety initiative programs; and Mechanism 5, enforcing administrative countermeasures such as work suspension and default/termination triggers for persistent developer noncompliance. Mechanisms 1 and 5 were the default mechanisms in all toll- and availability-based projects, whereas Mechanism 2 was common in availability-only projects. The research reviewed the RSM packages in the PPP agreements, elucidating the particulars of the RSM mechanisms, highlighting RSM design considerations, presenting implementation guidelines, and articulating research needs. The research results were validated against PPP highways in five other states and provinces. This synthesis research provides highway agencies with an extensive practice review to support RSM package design for future PPP projects.
Keywords
Qualitative Research; Incentives; Public-private Partnerships (ppps); Performance Specifications; Roadway Safety; Payment Mechanisms; Availability Payment; Highways
Sohn, Dong Wook; Moudon, Anne Vernez; Lee, Jeasun. (2012). The Economic Value of Walkable Neighborhoods. Urban Design International, 17(2), 115 – 128.
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Abstract
This study investigated how the benefits of a walkable neighborhood were reflected in the American real estate market by examining the economic values of urban environmental factors supporting walking activities. Property values were used as a proxy measure for economic value and analyzed in relation to land use characteristics that have been known to correlate with walking at the neighborhood scale. Four aspects of the built environment supporting walking were included in the analyses: development density, land use mix, public open space and pedestrian infrastructure. Hedonic models were employed where the property value was regressed on the measures of the four sets of correlates of walking in a neighborhood. Models were estimated for four land use types - single-family residential, rental multi-family residential, commercial and office. The findings did not support previous arguments that increasing density weakens the quality of a neighborhood. To the contrary, the positive association of higher development density with the value of single-family residential properties detected in King County suggested that high development density might increase surrounding property values. The pedestrian infrastructure and land use mix significantly contributed to increases in rental multi-family residential property values. Higher development density with higher street and sidewalk coverage were also favored by retail service uses. In relation to land use mix, mixing retail service uses and rental multi-family residential uses helped make rental housings more attractive. URBAN DESIGN International (2012) 17, 115-128. doi:10.1057/udi.2012.1; published online 4 April 2012
Keywords
Land-use; Physical-activity; Travel Behavior; Smart Growth; Mode Choice; Urban Form; Walking; Gis; Transportation; Accessibility; Mixed Land Use; Neighborhood; Urban Design