Micro-geographic property price and rent indices

Ahlfeldt, Gabriel M. ORCID: 0000-0001-5664-3230, Heblich, Stephan and Seidel, Tobias (2023) Micro-geographic property price and rent indices. Regional Science and Urban Economics, 98. ISSN 0166-0462

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Abstract

We develop a programming algorithm that predicts a balanced-panel mix-adjusted house price index for arbitrary spatial units from repeated cross-sections of geocoded micro data. The algorithm combines parametric and non-parametric estimation techniques to provide a tight local fit where the underlying micro data are abundant, and reliable extrapolations where data are sparse. To illustrate the functionality, we generate a panel of German property prices and rents that is unprecedented in its spatial coverage and detail. This novel data set uncovers a battery of stylized facts that motivate further research, e.g. on the positive correlation between density and price-to-rent ratios in levels and trends, both within and between cities. Our method lends itself to the creation of comparable neighborhood-level rent indices (Mietspiegel) across Germany.

Item Type:	Article
Official URL:	https://www.sciencedirect.com/journal/regional-sci...
Additional Information:	© 2022 The Authors
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HB Economic Theory
JEL classification:	R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R10 - General
Date Deposited:	21 Sep 2022 16:18
Last Modified:	18 Nov 2024 08:00
URI:	http://eprints.lse.ac.uk/id/eprint/116649

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