Adjacency Neighborhood Effects and Owner-Assessed Home Values

Julia Freybote, Lauren Simon and Akhila Veldandi

Journal of Housing Research, 2023, vol. 32, issue 2, 123-141

Abstract: Adjacency neighborhood effects such as neighbor interactions or perceived neighborhood quality have been neglected in the housing literature due to a lack of data. We investigate the impact of these effects on the housing wealth perceived by homeowners. Using a national longitudinal survey, we find that perceived neighborhood quality positively impacts owner-assessed home values. However, this effect is driven by homeowners’ assessment of their neighborhoods’ quality relative to other neighborhoods rather than their neighborhoods’ perceived cleanliness or upkeep. Depending on the financial characteristics of homeowners, we also find neighbor interactions and perceived neighborhood safety to have a significant relation with self-assessed home values. Trust and support among neighbors and joint feel of the home and neighborhood on the other hand have no relation with estimated values. While neighborhood quality consistently explains owner-assessed values, home quality only has a relation with value estimates for homeowners with certain financial characteristics. Considering the importance of perceived housing wealth for household financial decisions as well as transaction prices, our findings have implications for policy makers and developers.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10527001.2022.2111749 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjrhxx:v:32:y:2023:i:2:p:123-141

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjrh20

DOI: 10.1080/10527001.2022.2111749

Access Statistics for this article

Journal of Housing Research is currently edited by Kimberly Goodwin

More articles in Journal of Housing Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().