Hedonic Modeling in Urban Housing Market Dynamics
Summary
Hedonic modeling decomposes urban housing prices into component characteristics—structural attributes, neighbourhood quality, locational advantages and environmental factors—by estimating the implicit value of each attribute through regression techniques. Originating in classical consumer theory, the approach has evolved to incorporate spatial econometrics and machine-learning tools, enabling analysts to capture local heterogeneity and temporal dynamics. Modern implementations employ large, geo-referenced datasets to delineate housing submarkets, assess policy interventions and quantify the impact of non-market shocks such as climate risk. By integrating geographically weighted regression, spatial autoregressive frameworks and hybrid repeat-sales methods, researchers can map price variation, detect spillover effects and reveal stability or shifts in submarket boundaries. The resulting insights inform urban planning, investment decisions and targeted policy measures across diverse global contexts.
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Hedonic Modeling in Urban Housing Market Dynamics publication trend
The graph below shows the total number of articles in hedonic modeling in urban housing market dynamics across all publications each year (not limited to Nature Index journals).
Technical terms
Hedonic price model: A regression framework that decomposes property prices into the implicit values of individual attributes (e.g., size, location, amenities).
Housing submarket: A geographically or structurally defined segment of the housing market characterised by homogeneous price determinants and consumer preferences.
Geographically weighted regression (GWR): A local regression technique that allows model coefficients to vary spatially, capturing geographic heterogeneity in attribute effects.
Spatial autoregressive model: An econometric approach that accounts for spatial dependence by incorporating lagged values of the dependent variable across neighbouring locations.
References
- Distressed property and spillover effect: A study of property price response to coastal flood risk. Land Use Policy (2024).
- Spatio-temporal stability of housing submarkets. Tracking spatial location of clusters of geographically weighted regression estimates of price determinants. Land Use Policy (2021).
- The effects of jobs, amenities, and locations on housing submarkets in Xiamen City, China. Journal of Housing and the Built Environment (2022).
- Assessing the spatial impact of policy interventions on real-estate values: an exemplar of the use of the hybrid hedonic/repeat-sales method. Regional Studies Regional Science (2017).
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