Location, location, location: Extracting location value from house prices

Arbeitspapier

The price for a single-family house depends both on the characteristics of the building and on its location. We propose a novel semiparametric method to extract location values from house prices. After splitting house prices into building and land components, location values are estimated with adaptive weight smoothing. The adaptive estimator requires neither strong smoothness assumptions nor local symmetry. We apply the method to house transactions from Berlin, Germany. The estimated surface of location values is highly correlated with expert-based land values and location ratings. The semiparametric method can therefore be used for applications where no other location value information exists or where this information is not reliable.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 649 Discussion Paper ; No. 2012-040

Classification and Topics

• Classification: Wirtschaft ; Housing Supply and Markets ; Semiparametric and Nonparametric Methods: General
• Subject: location value ; adaptive weight smoothing ; spatial modeling ; Wohnimmobilien ; Wohneigentum ; Immobilienpreis ; Wohnstandort ; Immobilienbewertung ; Theorie ; Berlin ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kolbe, Jens ; Schulz, Rainer ; Wersing, Martin ; Werwatz, Axel
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
• (where): Berlin
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/79620
• Last update: 10.03.2025, 11:44 AM CET