The price of residential land in large US cities
By Morris A. Davis, M. Palumbo. 2006
314 citations recorded by the source corpus.
Combining data from several sources, we build a database of home values, the cost of housing structures, and residential land values for 46 large US metropolitan areas from 1984 to 2004. Our analysis of these new data reveal that since the mid-1980s residential land values have appreciated over a much wider range of cities than is commonly believed. And, since 1998, almost all large US cities have seen significant increases in real residential land prices. Averaging across the cities in our sample, by year-end 2004, the value of residential land accounted for about 50 percent of the total market value of housing, up from 32 percent in 1984. An implication of our results is that housing is much more land intensive than it used to be, meaning that the future course of home prices--the average rate of appreciation and volatility--is likely to be determined even more by demand factors than was the case even ten or twenty years ago.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/b527dbf5a03ccd319302b2cea4cd7cbdc14e031b
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In Economics and Econometrics
Citations in the corpus
- Spatially non-stationary relationships between urban residential land price and impact factors in Wuhan city, China (2016, background): “…product of natural, economic, environmental and social factors, while land price as an important driving force affects the direction and strength of urban land use change expressed by urban horizontal expansion and vertical development (Hu, Cheng, Wang, & Xu, 2013; Morris & Michael, 2008).”
- Relationship between urban land price and housing price: Evidence from 21 provincial capitals in China (2013, background): “Davis and Palumbo (2008) reveal that residential land values have appreciated in more cities since the mid-1980s.”
- Is the Shale Energy Boom a Bust for Nearby Residents? Evidence from Housing Values in Pennsylvania (2014, unknown): “75 miles of an active well site for which the drilling permit was acquired within 6 months experience a decrease in home values of 21.7%. This large impact mirrors similar findings by Muehlenbachs et al (2012) who find a large negative property value impact of -24% for households sourcing well water”
- Land use regulations and the value of land and housing: An intra-metropolitan analysis (2014, methodology): “In Section 6, which analyzes the relation between housing values and land values, we make the linkage to the work by Saiz (2010) and Davis and Palumbo (2008) more explicit, and we note the complementarity in approaches.”
- Residential Land Use Regulation and the US Housing Price Cycle Between 2000 and 2009 (2012, background): “In our paper, the sample period covers the 2006-2009 housing downturn that is not included in Glaeser et al. (2008). The addition of new data provides another chance to examine the relationship between housing supply conditions and price corrections in downturns.”
- Urban Growth and Transportation (2012, unknown): “While aggregate land rent is extremely hard to measure (see e.g., Davis and Palumbo, 2008), it is clear from the equilibrium equalization of utility across all city locations that a larger city warrants a higher aggregate rent.”
- No Price Like Home: Global House Prices, 1870-2012 (2014, unknown): “If the price of the house rises faster than the cost of building a structure of similar size and quality, the underlying land gains in value (Davis and Heathcote, 2007; Davis and Palumbo, 2007).”