Determinants of real estate values

Abstract

In this paper we present some empirical results on the determinants of real estate values in the New Haven metropolitan area. We attempt to explain housing values using information on the physical characteristics of the house and on some features of the neighborhood in which the house is located. In the latter category we are primarily interested in those features of neighborhoods which can be influenced or controlled by local governments. Determining provisions of zoning codes (or granting variances), routing traffic, allocating services (street sweeping, education, fire protection, etc.) are examples of governmental activities which may affect the nature of neighborhoods. Specific policy changes are frequently advocated or opposed on the grounds of protecting property values so it seems worthwhile to attempt to measure the magnitudes of these effects.