Valuing Amenities (09-05-17)

De Araujo and Cheng studied differences in amenities desired by house and apartment buyers.  Analyzing information collected in Brooklyn, New York, from 2008 to 2013, the team found that “Amenity preferences between the two types of homebuyers are indeed different. The . . . value of accessibility to cultural amenities is greater to apartment than house buyers, while . . . workplace amenity accessibility is greater to house than apartment buyers. . . . Urban policy-makers and real estate developers can use these results to inform land use planning in metropolitan areas aimed at further increasing residential property values.”

Pedro de Araujo and Kate Cheng.  “Do Preferences for Amenities Differ Among Home Buyers?  A Hedonic Price Approach.”  Review of Urban and Regional Development Studies, in press.