[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/hit/remfce/9.html
   My bibliography  Save this paper

Do Urban Amenities Drive Housing Rent?

Author

Listed:
  • Shimizu, Chihiro
  • Yasumoto, Shinya
  • Asami, Yasushi
  • Clark, Terry Nichols
Abstract
What brought the concentration of people to certain areas? And how much are households prepared to pay in exchange for being part of such concentrations? Focusing on the Tokyo metropolitan area, which is one of the world’s largest urban areas, this paper aggregates individual data relating to urban amenities in small areas and explores its relationship to population concentration, as well as clarifying its relationship to rent (housing service prices). It is understood from the obtained results that a concentration f urban amenities produces population concentration and also raises housing rent. In addition, it is shown that when measuring the degree of amenity concentration, it is the diversity of amenities, not simply the total number of amenities that is important. Concentration of diverse amenities enhances an area’s appeal, and as a result, households will seek to reside there even if rents are high. Among the various types of amenities, it was observed that amenities such as recreational classes, educational facilities and convenience facilities such as restaurants have positive externality. On the other hand, a clear negative relationship was found between housing rent and amenities with negative externality, such as cemeteries and video arcades.

Suggested Citation

  • Shimizu, Chihiro & Yasumoto, Shinya & Asami, Yasushi & Clark, Terry Nichols, 2014. "Do Urban Amenities Drive Housing Rent?," HIT-REFINED Working Paper Series 9, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:remfce:9
    Note: First version: July 26, 2014, This version: Aug 16, 2014
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/26840/wp009.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
    2. Shimizu, Chihiro & Nishimura, Kiyohiko G. & Watanabe, Tsutomu, 2010. "Residential rents and price rigidity: Micro structure and macro consequences," Journal of the Japanese and International Economies, Elsevier, vol. 24(2), pages 282-299, June.
    3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    4. Dwight W. Adamson & David E. Clark & Mark D. Partridge, 2004. "Do Urban Agglomeration Effects and Household Amenities have a Skill Bias?," Journal of Regional Science, Wiley Blackwell, vol. 44(2), pages 201-224, May.
    5. Kiyohiko Nishimura & Elod Takáts, 2012. "Ageing, property prices and money demand," BIS Working Papers 385, Bank for International Settlements.
    6. Fogel, Robert William, 2000. "The Fourth Great Awakening and the Future of Egalitarianism," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226256627, April.
    7. David Genesove & Christopher Mayer, 2001. "Loss Aversion and Seller Behavior: Evidence from the Housing Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1233-1260.
    8. Chihiro Shimizu & Kiyohiko G. Nishimura & Tsutomu Watanabe, 2010. "Residential Rents and Price Rigidity: Micro Structure and Macro Consequences," NBER Chapters, in: Sticky Prices and Inflation Dynamics (NBER-TCER-CEPR), pages 282-299, National Bureau of Economic Research, Inc.
    9. William Goetzmann & Liang Peng, 2006. "Estimating House Price Indexes in the Presence of Seller Reservation Prices," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 100-112, February.
    10. Michael Storper & Allen J. Scott, 2009. "Rethinking human capital, creativity and urban growth," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 147-167, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kono, Tatsuhito & Tsutaki, Keisuke, 2023. "Residential Land Use and Utilities of Multiple Generations with Lifespan Perspectives and Demographic Dynamics," MPRA Paper 117595, University Library of Munich, Germany.
    2. Lily Kiminami & Akira Kiminami & Shinichi Furuzawa, 2018. "Impacts of multi-functionality of urban agriculture on the CCs in Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 507-527, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huasheng Song & Min Zhang & Ruqu Wang, 2016. "Amenities and spatial talent distribution: evidence from the Chinese IT industry," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(3), pages 517-533.
    2. David Wolf & Kenji Takeuchi, 2022. "Who Gives a Dam? Capitalization of Flood Protection in Fukuoka, Japan," Discussion Papers 2203, Graduate School of Economics, Kobe University.
    3. Margaret Olfert & Mark Partridge, 2011. "Creating the Cultural Community: Ethnic Diversity vs. Agglomeration," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(1), pages 25-55.
    4. Spaenjers, Christophe & Goetzmann, William N. & Mamonova, Elena, 2015. "The economics of aesthetics and record prices for art since 1701," Explorations in Economic History, Elsevier, vol. 57(C), pages 79-94.
    5. Hand, Michael S. & Thacher, Jennifer A. & McCollum, Daniel W. & Berrens, Robert P., 2008. "Forest Amenities and Location Choice in the Southwest," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-22.
    6. Zhang, Min & Partridge, Mark & Song, Huasheng, 2018. "Amenities and Geography of Innovation: Evidence from Chinese Cities," MPRA Paper 83673, University Library of Munich, Germany.
    7. I-Chun Tsai, 2021. "Price Rigidity and Vacancy Rates: The Framing Effect on Rental Housing Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 63(4), pages 547-564, November.
    8. Ofer Raz-Dror, 2019. "The Changes In Rent In Israel During The Years Of The Housing Crisis 2008–2015," Israel Economic Review, Bank of Israel, vol. 17(1), pages 73-116.
    9. Gagliardi, Luisa & Schlüter, Teresa, 2015. "The role of education for amenity based sorting in British cities," LSE Research Online Documents on Economics 65017, London School of Economics and Political Science, LSE Library.
    10. John Carruthers & Gordon F. Mulligan, 2012. "The plane of living and the precrisis evolution of housing values in the USA," Journal of Economic Geography, Oxford University Press, vol. 12(4), pages 739-773, July.
    11. Wolf, David & Takeuchi, Kenji, 2022. "Holding back the storm: Dam capitalization in residential and commercial property values," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    12. Gautier, Pieter & van Vuuren, Aico & Siegmann, Arjen, 2007. "The Effect of the Theo van Gogh Murder on House Prices in Amsterdam," CEPR Discussion Papers 6175, C.E.P.R. Discussion Papers.
    13. de Wit, Erik R. & Englund, Peter & Francke, Marc K., 2013. "Price and transaction volume in the Dutch housing market," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 220-241.
    14. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    15. 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.
    16. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    17. Fredrik Carlsen & Stefan Leknes, 2022. "For whom are cities good places to live?," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2177-2190, December.
    18. John I. Carruthers & Gordon F. Mulligan, 2013. "Through the Crisis," Economic Development Quarterly, , vol. 27(2), pages 124-143, May.
    19. Penasse, J.N.G. & Renneboog, L.D.R., 2014. "Bubbles and Trading Frenzies : Evidence from the Art Market," Other publications TiSEM bf0d8984-df7f-4f02-afc7-3, Tilburg University, School of Economics and Management.
    20. Aurélie LALANNE & Guillaume POUYANNE, 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA (2007-2019) 2012-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

    More about this item

    Keywords

    amenity concentration; population concentration; housing service prices; hedonic approach; Geographic Information System (GIS);
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:remfce:9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Digital Resources Section, Hitotsubashi University Library (email available below). General contact details of provider: https://edirc.repec.org/data/iehitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.