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home / centre for automotive safety research / Publications / List / Details Publication Details| Title | Inconsistent effects of a feature on home prices — Lang’s two-market explanation | | Authors | Hutchinson TP | | Year | 2008 | | Type | Journal Article | | Abstract | In his 2005 article “Valuing the Suburbs: Why Some ‘Improvements’ Lower Home Prices,” Robert E. Lang proposes an explanation of why improvements to a home may either add to or detract from its value. He suggests a dual housing market: “one for conventional low-density suburbs, and one for cities and denser suburbs” (8). The former values features implying a natural or less intense use, and the latter values features adding “intensity or utility to a property” (8). This article reinterprets Lang’s explanation as an example of interaction (something having a different effect under one condition than it does under another) arising via summation followed by a nonlinear function of the result. An alternative explanation in terms of the fit between characteristics of a home and its location is also noted. | | Journal Title | Housing Policy Debate | | Journal Volume (Issue) | 19(3) | | Page Range | 573-582 | | Notes | Available from http://www.mi.vt.edu/data/files/hpd%2019.3/hutchinson_article_w.pdf |
| Reference | | Hutchinson TP (2008). Inconsistent effects of a feature on home prices — Lang’s two-market explanation. Housing Policy Debate, 19(3), 573-582. |
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