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The Impact Of Mixed Land Use On Residential Property Values

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  • Hans R.A. Koster
  • Jan Rouwendal
Abstract
This discussion paper led to a publication in the Journal of Regional Science (2012). Vol. 52(5), pages 733-761. Contemporary European urban planning policies aim to mix land uses in compact neighbourhoods. It is presumed that mixing land uses yields socio-economic benefits and therefore has a positive effect on housing values. In this paper, we investigate the impact of mixed land use on housing values using semiparametric estimation techniques. We demonstrate that a diverse neighbourhood is positively valued by households. There are various land use types which positively affect house prices, e.g. business services and leisure. Land uses that are incompatible with residential land use are, among others, manufacturing and wholesale. It appears that households are willing to pay up to 6 percent more for a house in a mixed neighbourhood than for an otherwise comparable house in a monofunctional area. We also show that there is substantial heterogeneity in willingness to pay for mixed land use. For example, apartment occupiers are willing to pay almost 25 percent more for diversity than households living in detached housing.
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Suggested Citation

  • Hans R.A. Koster & Jan Rouwendal, 2012. "The Impact Of Mixed Land Use On Residential Property Values," Journal of Regional Science, Wiley Blackwell, vol. 52(5), pages 733-761, December.
    • Handle: RePEc:bla:jregsc:v:52:y:2012:i:5:p:733-761
    DOI: j.1467-9787.2012.00776.x
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    Cited by:

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    2. Bo-sin Tang & Kwan To Wong, 2020. "Assessing externality: Successive event studies on market impacts of new housing development on an old residential neighbourhood," Environment and Planning B, , vol. 47(1), pages 156-173, January.
    3. Velma Zahirovic-Herbert & Karen M Gibler, 2022. "The effect of film production studios on housing prices in Atlanta, the Hollywood of the South," Urban Studies, Urban Studies Journal Limited, vol. 59(4), pages 771-788, March.
    4. Peter Gordon & Wendell Cox, 2012. "Cities in Western Europe and the United States: do policy differences matter?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 565-594, April.
    5. Jieyuan Zhu & Huiting Lu & Tianchen Zheng & Yuejing Rong & Chenxing Wang & Wen Zhang & Yan Yan & Lina Tang, 2020. "Vitality of Urban Parks and Its Influencing Factors from the Perspective of Recreational Service Supply, Demand, and Spatial Links," IJERPH, MDPI, vol. 17(5), pages 1-17, March.
    6. Matthias Wrede, 2022. "Voting on urban land development," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 335-359, March.
    7. Hans R. A. Koster, 2013. "Rocketing Rents The magnitude and attenuation of agglomeration economies in the commercial property market," SERC Discussion Papers 0125, Centre for Economic Performance, LSE.
    8. Hongji Chen & Kangchuan Su & Lixian Peng & Guohua Bi & Lulu Zhou & Qingyuan Yang, 2022. "Mixed Land Use Levels in Rural Settlements and Their Influencing Factors: A Case Study of Pingba Village in Chongqing, China," IJERPH, MDPI, vol. 19(10), pages 1-18, May.
    9. Gerard H Dericks & Hans R A Koster, 2021. "The billion pound drop: the Blitz and agglomeration economies in London [The economics of density: evidence from the Berlin wall]," Journal of Economic Geography, Oxford University Press, vol. 21(6), pages 869-897.
    10. Fahad Ahmed Shaikh & Mir Aftab Hussain Talpur & Imtiaz Ahmed Chandio & Saima Kalwar, 2022. "Factors Influencing Residential Location Choice towards Mixed Land-Use Development: An Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 14(21), pages 1-25, November.
    11. Yunes Almansoub & Ming Zhong & Asif Raza & Muhammad Safdar & Abdelghani Dahou & Mohammed A. A. Al-qaness, 2022. "Exploring the Effects of Transportation Supply on Mixed Land-Use at the Parcel Level," Land, MDPI, vol. 11(6), pages 1-28, May.
    12. Song Zhang & Mark Duijn & Arno J. Vlist, 2023. "Tenant Mix and Retail Rents in High Street Shopping Districts," The Journal of Real Estate Finance and Economics, Springer, vol. 67(1), pages 72-107, July.
    13. Brady P. Horn & Aakrit Joshi & Johanna Catherine Maclean, 2019. "Substance Use Disorder Treatment Centers and Property Values," NBER Working Papers 25427, National Bureau of Economic Research, Inc.
    14. Terrence M. Clauretie & Herman Li, 2019. "Land Values: Size Matters," The Journal of Real Estate Finance and Economics, Springer, vol. 58(1), pages 80-110, January.
    15. Yunes Almansoub & Ming Zhong & Muhammad Safdar & Asif Raza & Abdelghani Dahou & Mohammed A. A. Al-qaness, 2023. "Modeling Impact of Transportation Infrastructure-Based Accessibility on the Development of Mixed Land Use Using Deep Neural Networks: Evidence from Jiang’an District, City of Wuhan, China," Sustainability, MDPI, vol. 15(21), pages 1-40, October.
    16. Zhijiao Qin & Yan Yu & Dianfeng Liu, 2019. "The Effect of HOPSCA on Residential Property Values: Exploratory Findings from Wuhan, China," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    17. Ammar Malik & Andrew Crooks & Hilton Root & Melanie Swartz, 2015. "Exploring Creativity and Urban Development with Agent-Based Modeling," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(2), pages 1-12.
    18. Liu, Jixiang & Xiao, Longzhu, 2023. "Non-linear relationships between built environment and commuting duration of migrants and locals," Journal of Transport Geography, Elsevier, vol. 106(C).
    19. Song Zhang & Mark van Duijn & Arno J. van der Vlist, 2020. "The external effects of inner‐city shopping centers: Evidence from the Netherlands," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 583-611, September.
    20. Peter Gordon & Wendell Cox, 2012. "Cities In Western Europe and The United States: Do Policy Differences Matter?," Working Paper 8956, USC Lusk Center for Real Estate.
    21. Mike Langen & Erdal Aydin & Piet Eichholtz & Nils Kok, 2022. "Getting high or getting low? the external effects of coffeeshops on house prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(2), pages 565-592, June.
    22. Hong Jiang & Weiting Xiong, 2024. "The Impact of Land-Use Mix on Technological Innovation: Evidence from a Grid-Cell-Level Analysis of Shanghai, China," Land, MDPI, vol. 13(4), pages 1-17, April.
    23. Hanbing Yang & Meichen Fu & Li Wang & Feng Tang, 2021. "Mixed Land Use Evaluation and Its Impact on Housing Prices in Beijing Based on Multi-Source Big Data," Land, MDPI, vol. 10(10), pages 1-21, October.
    24. Hee Jin Yang & Jihoon Song & Mack Joong Choi, 2016. "Measuring the Externality Effects of Commercial Land Use on Residential Land Value: A Case Study of Seoul," Sustainability, MDPI, vol. 8(5), pages 1-15, April.
    25. Wouter Vermeulen & Jan Rouwendal, 2014. "On The Value Of Foregone Open Space In Sprawling Cities," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 61-69, January.

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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