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Distinctively different: a new approach to valuing architectural amenities

Ahlfeldt, Gabriel M. and Holman, Nancy (2017) Distinctively different: a new approach to valuing architectural amenities. The Economic Journal. ISSN 0013-0133 (In Press)

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Identification Number: 10.1111/ecoj.12429

Abstract

We propose a method to estimate the capitalised value of the architectural design quality of an area. Our economic design premium is identified by spatially differentiating property prices and design quality within neighbourhoods and comparing the differences across neighbourhoods. We apply our method to 48 conservation area neighbourhoods in England in which we analyse around 7900 property transactions and interview more than 500 residents. We find a capitalisation effect of about 6.6% (£16k) associated with a one standard deviation increase in our index of distinctive design. Our results suggest that this effect is at least partially driven by architectural externalities.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1111/(IS...
Additional Information: © 2016 Royal Economic Society.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD100 Land Use
H Social Sciences > HF Commerce
K Law > KD England and Wales
Sets: Departments > Geography and Environment
Date Deposited: 27 Apr 2016 09:31
Last Modified: 04 Apr 2017 08:14
URI: http://eprints.lse.ac.uk/id/eprint/66241

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