We develop a programming algorithm that predicts a balanced-panel mix-adjusted house price index for arbitrary spatial units from repeated cross-sections of geocoded micro data. The algorithm combines parametric and non-parametric estimation techniques to provide a tight local fit where the underlying micro data are abundant, and reliable extrapolations where data are sparse. To illustrate the functionality, we generate a panel of German property prices and rents that is unprecedented in its spatial coverage and detail. This novel data set uncovers a battery of stylized facts that motivate further research, e.g. on the positive correlation between density and price-to-rent ratios in levels and trends, both within and between cities. Our method lends itself to the creation of comparable neighborhood-level rent indices (Mietspiegel) across Germany.

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1 January 2023

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Regional Science and Urban Economics 982023

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DOI: 10.1016/j.regsciurbeco.2022.103836

https://www.sciencedirect.com/science/article/pii/S0166046222000746

This Journal article is published under the centre's Urban programme, Neighbourhoods programme.

This publication comes under the following theme: Housing