A Spatial Analysis of the Impact of Float Distance on the Values of Canal-Front Houses

We utilize spatial Durbin modeling to measure the impact of distance to open water on the values of canal-front houses in Southwest Florida. Data from 1998 through 2015 are examined to observe how such an impact may vary across different market conditions. The results provide several interesting ins...

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Bibliographic Details
Published in:The Journal of real estate research 2019-04, Vol.41 (2), p.285-318
Main Authors: Jauregui, Andres, Allen, Marcus T., Weeks, H. Shelton
Format: Article
Language:English
Subjects:
Access
Canals
Economic conditions
Economic models
Externality
Houses
Housing prices
Population
Property values
Recreation
Spatial analysis
Water
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Summary:We utilize spatial Durbin modeling to measure the impact of distance to open water on the values of canal-front houses in Southwest Florida. Data from 1998 through 2015 are examined to observe how such an impact may vary across different market conditions. The results provide several interesting insights. First, the results confirm that houses with frontage on saltwater canals that afford ocean access are priced higher than (1) houses with no canal frontage and (2) houses on freshwater canals with no ocean access. Second, distance to open water is also a significant price determinant of houses with frontage on saltwater canals. Third, the open water access premium has fluctuated over time, consistent with general economic conditions in this market.
ISSN:0896-5803
2691-1175
DOI:10.1080/10835547.2019.12091527