# RECORD 63f327f2d844daf6ba970bc6d5f6ab1fc9861dfd # TITLE: External Factors, Housing Values, and Rents: Evidence from Survey Data # YEAR: 2000.0 VENUE: Journal of Housing Research DOI: 10.1080/2167034x.2003.12461361 # AUTHORS: Vedia Dökmeci; Zeynep Önder; Abdullah Yavas # PAGES: 26 CANDIDATE TABLE PAGES (1-based): [21, 23, 25] # ABSTRACT: This study uses a rich survey data to analyze housing values and rents in Istanbul, Turkey. In addition to variables related to location, household characteristics, and the physical characteristics of the property, the data involves a number of “qualitative” questions related to a set of external factors, such as the satisfaction level of the occupants with green area, parks, recreational facilities, transportation, distance to work, and noise. The paper identifies and compares the set of external factors that have a significant impact on property values and rents. Introduction When valuing residential property, one must consider the effects of the external factors as well as the characteristics of the property itself. Typically, these external factors are grouped together under a “location” variable. The principal reason for this practice is that the available data sets, such as the Multiple Listing Data sets, usually do not provide information on individual external factors. The other reason is that most of these external factors, such as noise, view, greenery, and accessability, are difficult to measure. The current study overcomes this problem by generating the data through an extensive survey. The survey was conducted in Istanbul, Turkey and includes questions about the occupants’ level of satisfaction / dissatisfaction with a number of external factors as well as questions about the physical, locational, and household characteristics of the property. The external factors included greenery, nearby parks, noise, recreational facilities, access to shopping centers, transportation facilities, distance to work, road conditions, distance to the street, and site conditions. The purpose of the project is to identify and compare the set of external factors have an impact on property values and rents. A number of earlier studies examined the role of individual external factors on housing prices. Hughes and Sirmans (1992, 1993) looked at the impact of different traffic levels within a neighborhood and compared the negative effects of excessive traffic (smoke, noise, danger, dust) with the positive effects of better access. Their study, based on 288 MLS residential sales within the Baton Rouge, Lousiana, metropolitian area, suggests a downward adjustment in the price of 11.49% for high traffic. The study by Li and Brown (1980) included data on air pollution, visual quality, noise and proximity to the ocean, rivers, recreational areas, schools, expressway interch ===== PAGE 1 (score 2, numeric-paren 0, table-words 0, var-words 2) ===== econstor Make Your Publications Visible. A Service of zbw Leibniz-Informationszentrum Wirtschaft Leibniz Information Centre for Economics Dökmeci, Vedia; Yavas, Abdullah Conference Paper External Factors, Housing Values And Rents: Evidence From Survey Data 40th Congress of the European Regional Science Association: "European Monetary Union and Regional Policy", August 29 - September 1, 2000, Barcelona, Spain Provided in Cooperation with: European Regional Science Association (ERSA) Suggested Citation: Dökmeci, Vedia; Yavas, Abdullah (2000) : External Factors, Housing Values And Rents: Evidence From Survey Data, 40th Congress of the European Regional Science Association: "European Monetary Union and Regional Policy", August 29 - September 1, 2000, Barcelona, Spain, European Regional Science Association (ERSA), Louvain-la-Neuve This Version is available at: http://hdl.handle.net/10419/114780 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. www.econstor.eu ===== PAGE 21 (score 27, numeric-paren 0, table-words 2, var-words 19) ===== 17 Table 1: Summary Statistics VARIABLE MEAN STD. DEV. MIN. MAX. LABEL VAR1-A 147.77 228.35 20,000.0 1,000,000.0 PRICE YOU WOULD ASK (000 TL) VAR1-B 77.88 85.95 100.0 5000.0 RENT YOU WOULD CHARGE (000 TL) VAR2 ..... ..... 1.0 19.0DISTRICTS VAR3 1.05 .93 1.0 3.0ROAD CONDITIONS VAR4 1.91 .69 1.0 5.0ROAD COVER VAR5 2.20 .72 1.0 5.0TYPE OF HOUSING (CONDO, SINGLE-FAMILY,..) VAR6 4.79 2.20 .0 8.0HOW LONG HAVE YOU LIVED IN THIS HOUSE VAR7 90.63 67.88 30.0 550.0 SURFACE AREA ( M2) VAR8 2.45 .89 1.0 10.0NUMBER OF ROOMS VAR9 .89 .92 .0 5.0NUMBER OF BALCONY VAR10 4.43 2.03 1.0 20.0# OF PEOPLE IN THIS HOUSE VAR11 1.95 1.38 1.0 5.0OWNERSHIP VAR12 .91 .92 .0 6.0HOW MANY HOUSES DO YOU OWN VAR13 .85 .72 .0 4.0LOCATION OF HOMES SATISFACTION LEVEL VAR14 2.13 .72 1.0 4.0W/ DISTRICT VAR15 2.20 .75 1.0 4.0W/ TRANSPORTATION VAR16 2.11 .89 1.0 4.0W/ DISTANCE TO WORKPLACE VAR17 2.28 .75 1.0 4.0W/ HOUSING SIZE VAR18 2.26 .81 1.0 4.0W/ NUMBER OF ROOMS, LIVING VAR19 1.92 1.14 1.0 4.0 W/ BALCONY AND TERRACE VAR20 2.38 .82 1.0 4.0W/ QUALITY OF CONSTRUCTION VAR21 2.49 .92 1.0 4.0W/ SITE IMPROVEMENTS VAR22 2.78 .97 1.0 4.0W/ GREEN AREAS VAR23 2.84 .97 1.0 4.0W/ NEARBY RECREATIONAL FACILITIES VAR24 2.33 .79 1.0 4.0W/ DRINKING WATER VAR25 2.16 .76 1.0 4.0W/ SEWAGE SYSTEM VAR26 2.03 1.01 1.0 4.0W/ CONDITION OF THE ROOF VAR27 2.13 .84 1.0 4.0W/ NEARBY NOISE VAR28 1.96 .72 1.0 4.0W/ NEIGHBORHOOD RELATIONS VAR29 2.51 .91 1.0 4.0W/ VIEW VAR30 2.13 .82 1.0 4.0W/ DISTANCE TO STREET VAR31 2.08 .77 1.0 4.0W/ SHOPPING FACILITIES VAR32 2.27 .53 1.0 4.0OVERALL LEVEL OF SATISFACTION VAR33 1.76 1.21 1.0 4.0LEGAL STATUS (TITLE, PERMIT, ..) VAR34 2.73 .50 1.0 4.0TYPE OF CONSTRUCTION VAR35 2.00 .81 1.0 3.0AGE OF THE BUILDING (<10, 11-20, >20) VAR36 2.93 1.22 1.0 4.0WHO BUILT THE PROPERTY? VAR37 2.63 .81 1.0 4.0TYPE OF HEATING VAR38 2.81 1.14 1.0 5.0WC AND BATH EQUIPMENT IN THE BATHROOM VAR39 .43 .50 .0 1.0CLOSET VAR40 .38 .56 .0 1.0BATH TAB VAR41 .15 .36 .0 1.0SHOWER VAR42 .07 .38 .0 1.0SHOWER CABIN VAR43 .14 .35 .0 1.0THERMOSIFON VAR44 .50 .50 .0 1.0CHAUFBAIN VAR45 .45 .50 .0 1.0WASHING MACHINE VAR46 .40 .49 .0 1.0AUTOMATIC WASHING MACHINE VAR47 .03 .16 .0 1.0DRYER VAR48 .35 .48 .0 1.0WC STYLE (WESTERN) VAR49 .75 .44 .0 1.0WC STYLE (TURKISH) VAR50 .58 .49 .0 1.0WASH BASIN IN THE BATHROOM VAR51 1.01 .24 .0 1.0SEPARATE KITCHEN EQUIPMENT IN THE KITCHEN VAR52 .94 .25 .0 1.0KITCHEN TABLE VAR53 .82 .38 .0 1.0WASH BASIN VAR54 .86 .35 .0 1.0RUNNING WATER VAR55 .85 .36 .0 1.0SEWAGE VAR56 .68 .47 .0 1.0STOVE VAR57 .71 .45 .0 1.0 OVEN VAR58 .93 .25 .0 1.0REFRIGERATOR ===== PAGE 22 (score 20, numeric-paren 0, table-words 0, var-words 17) ===== 18 VAR59 .14 .35 .0 1.0DISH WASHER VAR60 .01 .10 .0 1.0GARBAGE DISPOSER DO YOU HAVE THE FOLLOWING? VAR61 .01 .12 .0 1.0CLOSED GARAGE VAR62 .12 .33 .0 1.0OPEN GARAGE VAR63 .04 .20 .0 1.0SATELLITE RECEIVER VAR64 .00 .03 .0 1.0SWIMMING POOL VAR65 .03 .17 .0 1.0FIRE STAIRS VAR66 .11 .38 .0 1.0ELEVATOR VAR67 .12 .33 .0 1.0HOT WATER VAR68 1.29 .45 .0 1.0DO YOU WANT A NEW HOME? VAR69 5.78 7.50 1.0 19.0WHICH DISTRICT WOULD YOU WANT TO MOVE VAR70 2.75 3.72 .0 18.0WHICH DISTRICT WOULD YOU...-REASON 1 VAR71 .79 2.48 .0 18.0WHICH DISTRICT WOULD YOU...-REASON 2 VAR72 .13 1.08 .0 18.0WHICH DISTRICT WOULD YOU...-REASON 3 VAR73 .68 .80 1.0 5.0WHY DO YOU WANT A NEW HOME? WHAT WOULD YOU CHANGE ABOUT HOUSE VAR74 .19 .39 .0 1.0TRANSPORTATION VAR75 .17 .38 .0 1.0DISTANCE TO YOUR JOB VAR76 .30 .46 .0 1.0 SIZE VAR77 .29 .45 .0 1.0NUMBER OF ROOMS AND BATH VAR78 .25 .43 .0 1.0BALCONIES VAR79 .31 .46 .0 1.0QUALITY OF THE CONSTRUCTION VAR80 .38 .48 .0 1.0SITE IMPROVEMENTS VAR81 .44 .50 .0 1.0GREEN AREAS VAR82 .45 .50 .0 1.0RECREATIONAL FACILITIES VAR83 .23 .42 .0 1.0WATER VAR84 .16 .36 .0 1.0SANITARY SYSTEM VAR85 .17 .38 .0 1.0 ROOF VAR86 .20 .40 .0 1.0 NOISE VAR87 .10 .31 .0 1.0NEIGHBORHOOD RELATIONSHIPS VAR88 .38 .49 .0 1.0 VIEW VAR89 .15 .36 .0 1.0DISTANCE TO THE STREET VAR90 .16 .37 .0 1.0SHOPPING FACILITIES VAR91 1.93 .49 1.0 4.0HOW WOULD YOU FINANCE A NEW HOUSE VAR92 .64 1.20 1.0 14.0REASONS FOR NOT OWNING A HOUSE 1 VAR93 .03 .50 1.0 14.0REASONS FOR NOT OWNING A HOUSE 2 VAR94 .00 .06 1.0 14.0REASONS FOR NOT OWNING A HOUSE 3 WHICH OF THE FOLLOWING DO YOU OWN? VAR95 .89 .32 .0 1.0 COLOR TV VAR96 .31 .46 .0 1.0 VCR VAR97 .09 .29 .0 1.0CD PLAYER VAR98 .05 .21 .0 1.0 PC VAR99 .65 .48 .0 1.0TELEPHONE VAR100 .02 .13 .0 1.0PAGER VAR101 .29 .55 .0 1.0 CAR VAR102 45.28 13.99 18.0 87.0 AGE OF THE HOUSEHOLD HEAD VAR103 20.73 12.54 1.0 67.0YEARS YOU HAVE BEEN MARRIED VAR104 2.40 1.80 1.0 10.0EDUCATION OF THE HEAD VAR105 1.50 1.64 1.0 10.0EDUCATION OF THE SPOUSE VAR106 1.57 1.84 1.0 10.0EDUCATION OF THE 1. CHILD VAR107 1.20 3.34 1.0 10.0EDUCATION OF THE 2. CHILD VAR108 .88 5.24 1.0 10.0EDUCATION OF THE 3. CHILD VAR109 .51 6.60 1.0 10.0EDUCATION OF THE 4. CHILD VAR110 .45 6.59 1.0 10.0EDUCATION OF THE 5. CHILD VAR111 .44 6.59 1.0 10.0EDUCATION OF THE 6. CHILD VAR112 6.76 3.46 1.0 12.0OCCUPATION OF THE HEAD VAR113 1.44 1.84 1.0 12.0OCCUPATION OF THE SPOUSE VAR114 3.05 3.59 1.0 12.0OCCUPATION OF THE 1. CHILD VAR115 2.17 4.25 1.0 12.0OCCUP ATION OF THE 2. CHILD VAR116 1.48 5.67 1.0 12.0OCCUPATION OF THE 3. CHILD VAR117 .63 6.68 1.0 12.0OCCUPATION OF THE 4.CHILD VAR118 .48 6.61 1.0 12.0OCCUPATION OF THE 5. CHILD VAR119 .45 6.59 1.0 12.0OCCUPATION OF THE 6. CHILD VAR120 1.66 .88 1.0 6.0TOTAL HOUSEHOLD INCOME ===== PAGE 23 (score 23, numeric-paren 0, table-words 3, var-words 8) ===== 19 Table 2: DEPENDENT VARIABLE = VALUE F Value 9.117 Prob.>F 0.0001 R-square 0.263 Adj R-sq 0.235 N 795 Parameter Standard Variable Estimate Error Prob > |T| INTERCEPT 853.80 168.89 0.0001 ASIA 28.70 34.95 0.4118 FATIH * 20.21 37.15 0.5866 G.O.PASA* -2.70 31.61 0.9319 KADIKOY* -37.98 46.52 0.4146 KAGITHANE* 103.60 39.12 0.0083 KARTAL* -65.87 46.19 0.1543 PENDIK * -119.54 66.75 0.0737 SARIYER* 256.40 56.79 0.0001 SISLI* 59.71 38.11 0.1176 USKUDAR* 20.86 39.08 0.5936 APARTMENT -31.73 23.84 0.1836 SINGLE FAMILY HOME 40.99 35.88 0.2536 LIVING AREA (m2) 1.88 0.28 0.0001 GARAGE 112.63 27.50 0.0001 TITLE & CONST. PERMIT 38.83 19.73 0.0494 BUILT BY A BUILDER 28.90 20.47 0.1585 TENANT 16.20 17.18 0.3458 FAMILY INCOME < 3M** -942.80 161.46 0.0001 FAMILY INCOME ? [3M,5M] -937.50 160.96 0.0001 FAMILY INCOME ? [5M,9M] -839.67 162.29 0.0001 FAMILY INCOME ? [9M,14M] -904.74 165.56 0.0001 FAMILY INCOME ? [15M,20M] -896.64 170.70 0.0001 GREEN AREA/VERY HAPPY 237.47 55.74 0.0001 RECREATIONAL FACILITIES/VERY HAPPY -108.77 79.89 0.1738 NOISE IN THE BUILDING/UNHAPPY -24.77 18.54 0.1820 NEIGHBOR. RELATIONS/HAPPY 21.86 22.82 0.3384 NEIGHBOR. RELATIONS/UNHAPPY 50.00 29.74 0.0931 VIEW/VERY HAPPY -59.09 44.96 0.1892 VIEW/UNHAPPY -27.92 16.99 0.1007 SHOPPING FACILITIES/HAPPY 23.37 18.12 0.1976 ===== PAGE 24 (score 1, numeric-paren 0, table-words 0, var-words 1) ===== 20 * A district of Istanbul ** Income in millions of Turkish Lira (the exchange rate at the time was $1? 6950 Turkish Liras) ===== PAGE 25 (score 23, numeric-paren 0, table-words 3, var-words 7) ===== 21 Table 3: DEPENDENT VARIABLE = RENT F Value 17.897 Prob.>F 0.0001 R-square 0.4443 Adj R-sq 0.4195 N 795 Parameter Standard Variable Estimate Error Prob > |T| INTERCEPT -217.11 55.98 0.0001 ASIA -5.52 8.82 0.53 BAKIRKOY* 14.19 8.26 0.08 BESIKTAS* 98.32 15.08 0.0001 BEYKOZ* 83.53 41.47 0.044 FATIH* 30.07 12.77 0.018 KAGITHANE* 36.97 12.67 0.0036 KARTAL* -9.49 12.75 0.457 PENDIK * 43.71 19.62 0.0262 SARIYER* 24.40 18.07 0.1774 SISLI* 48.91 12.53 0.0001 USKUDAR* 26.33 11.03 0.0173 LIVING AREA - M2 0.52 0.091 0.0001 GARAGE 57.45 8.66 0.0001 TITLE & CONST. PERMIT 20.43 6.20 0.001 BUILT BY A COOPERATIVE 59.59 11.44 0.0001 BUILT BY A BUILDER 23.38 6.16 0.0002 OWNER 12.76 5.51 0.0209 TENANT - RENT FREE 13.38 12.25 0.2749 FAMILY INCOME < 3M** 156.20 52.03 0.0028 FAMILY INCOME ? [3M,5M] 164.82 51.81 0.0015 FAMILY INCOME ? [5M,9M] 196.45 52.13 0.0002 FAMILY INCOME ? [9M,14M] 241.57 53.37 0.0001 FAMILY INCOME ? [15M,20M] 233.21 54.71 0.0001 TRANSPORTATION/VERY HAPPY 61.96 15.43 0.0001 TRANSPORTATION/HAPPY 18.88 11.76 0.109 TRANSPORTATION/UNHAPPY 15.33 12.30 0.2131 GREEN AREA/VERY HAPPY 86.04 18.05 0.0001 RECREATIONAL FACILITIES/VERY HAPPY -34.58 25.87 0.1817 RECREATIONAL FACILITIES/UNHAPPY -10.83 5.63 0.0547 NEIGHBOR. RELATIONS/UNHAPPY 12.49 7.44 0.0937 VIEW/VERY HAPPY -38.34 14.35 0.0077 VIEW/UNHAPPY 6.75 5.40 0.2115 SHOPPING FACILITIES/HAPPY 14.88 8.92 0.0958 SHOPPING FACILITIES/UNHAPPY 12.20 10.41 0.2415 ===== PAGE 26 (score 1, numeric-paren 0, table-words 0, var-words 1) ===== 22 * A district of Istanbul ** Income in millions of Turkish Lira (the exchange rate at the time was $1? 6950 Turkish Liras)