Examining the vintage effect in hedonic pricing using spatially varying coefficients models: a case study of single-family houses in the Canton of Zurich

Jakob A. Dambon (), Stefan Fahrländer (), Saira Karlen (), Manuel Lehner (), Jaron Schlesinger (), Fabio Sigrist () and Anna Zimmermann ()
Additional contact information
Jakob A. Dambon: University of Zurich
Saira Karlen: Fahrländer Partner Raumentwicklung
Manuel Lehner: Fahrländer Partner Raumentwicklung
Jaron Schlesinger: Fahrländer Partner Raumentwicklung
Fabio Sigrist: Lucerne University of Applied Sciences and Arts
Anna Zimmermann: Fahrländer Partner Raumentwicklung

Swiss Journal of Economics and Statistics, 2022, vol. 158, issue 1, 1-14

Abstract: Abstract This article examines the spatially varying effect of age on single-family house (SFH) prices. Age has been shown to be a key driver for house depreciation and is usually associated with a negative price effect. In practice, however, there exist deviations from this behavior which are referred to as vintage effects. We estimate a spatially varying coefficients (SVC) model to investigate the spatial structures of vintage effects on SFH pricing. For SFHs in the Canton of Zurich, Switzerland, we find substantial spatial variation in the age effect. In particular, we find a local, strong vintage effect primarily in urban areas compared to pure depreciative age effects in rural locations. Using cross validation, we assess the potential improvement in predictive performance by incorporating spatially varying vintage effects in hedonic models. We find a substantial improvement in out-of-sample predictive performance of SVC models over classical spatial hedonic models.

Keywords: Gaussian process; Spatial statistics; Real estate; Mass appraisal (search for similar items in EconPapers)
JEL-codes: C31 C53 R31 R32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1186/s41937-021-00080-2 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sjecst:v:158:y:2022:i:1:d:10.1186_s41937-021-00080-2

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/41937

DOI: 10.1186/s41937-021-00080-2

Access Statistics for this article

Swiss Journal of Economics and Statistics is currently edited by Marius Brülhart

More articles in Swiss Journal of Economics and Statistics from Springer, Swiss Society of Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().