Estimating the HARA Land Use Model for Housing Planning based on Hedonic Price Analysis

Li, Jianfei and Ossokina, Ioulia and Arentze, Theo (2020) Estimating the HARA Land Use Model for Housing Planning based on Hedonic Price Analysis. SHAPING URBAN CHANGE – Livable City Regions for the 21st Century. Proceedings of REAL CORP 2020, 25th International Conference on Urban Development, Regional Planning and Information Society. pp. 285-292. ISSN 2521-3938

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HARA is a land-use model that uses a search algorithm to find the optimal spatial allocation of new housing demands in an urban plan area. In the model, the plan area is represented as a grid of cells. A core element of the algorithm is a function that is used to evaluate the value of a cell for each possible land-use given its location. The value function is specified as the net value of a (housing) development given the land costs, the construction costs, and the market value of the development at a location. Specified in that way, the solution generated represents an optimum as well as a market equilibrium (maximum net value for developers). A critical prerequisite for this is, however, that the value-function is specified such that it accurately represents buyers’ willingness-to-pay for dwelling and location characteristics in the housing market. In this paper, we show how the value function can be estimated using hedonic price analysis. The analysis is carried out based on a large housing transaction data set focusing on two medium-sized cities in The Netherlands combined with detailed land-use data of these areas. Although a full set of land-use types is taken into account, special attention is paid to the classification of urban green space, given the purpose to analyze scenarios for developing urban green space. The results indicate that land-use effects on housing prices differ considerably between housing types as well as city. We conclude therefore that it is important in the estimation of land-use models to take the specific local conditions of housing markets and housing segments into account.

Item Type: Article
Uncontrolled Keywords: Land use allocation, Hedonic price method, Housing, Urban planning, decision making model
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HG Finance
Depositing User: REAL CORP Administrator
Date Deposited: 31 Jan 2021 16:38
Last Modified: 31 Jan 2021 16:38

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