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Abstract:

cover
SERC/Urban and Spatial Programme Discussion Paper
Historic Amenities, Income and Sorting of Households
Hans R. A. Koster, Piet Rietveld and Jos Van Ommeren
January 2013
Paper No' SERCDP0124:
Full Paper (pdf)

JEL Classification: R14; R21; R31; R38


Tags: historic amenities; sorting; conservation areas; semiparametric regression-discontinuity design; hedonic price method

We test the impact of historic amenities on house prices and sorting of households within cities. Conservation area boundaries enable us to employ a semiparametric regression-discontinuity approach to measure the impact of historic amenities. The approach allows for household-specific preferences. Conditional on neighbour attributes, the price difference at the conservation boundary is about 3 percent. Internal historic amenities are also important, as listed houses are about 6 percent more expensive. It is shown that rich households sort themselves in conservation areas and in listed buildings, because they have a higher willingness to pay for historic amenities. The results contribute to an explanation for the substantial spatial income differences within cities.