Princeton University Library Catalog

WHAT RESIDENTIAL REAL ESTATE INDICES IGNORE: THE IMPACT OF IMPLICIT AMENITY VALUES IN THE RECESSIONARY MANHATTAN MARKET

Author/​Artist:
Tait, Margaret [Browse]
Format:
Senior thesis
Language:
English
Advisor(s):
Bleakley, Hoyt [Browse]
Department:
Princeton University. Department of Economics [Browse]
Class year:
2014
Description:
69 pages
Summary note:
While indices report huge drops in real estate prices, little is known about the actual composition of the equity losses that occurred as a result of the Great Recession. After manually compiling a micro-data set of apartment sales and corresponding property characteristics for the island of Manhattan from 2006 to 2012, this study develops a hedonic model to estimate implicit prices of the characteristics examined. By allowing the value of different sets of variables to fluctuate with time and later running a Blinder- Oaxaca decomposition, we were able to observe whether individual components had an effect on average property prices and if so, whether these effects were homogeneous or variable-specific. Our significant findings indicate a flight to quality, in which individual characteristics with the greatest value in a static period increased the most in value after the Recession