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2018 Vol.29, Issue 4 Preview Page
An Empirical Analysis on the Influence of Nearby Abandoned Homes on Housing Price

지역 내 폐가가 주택가격에 미치는 영향에 대한 실증분석

Sung-Hyo Hong*
,
Jun-Hong Im**
홍성효 *
,
임준홍 **
**정회원(주저자), 공주대학교 경제통상학부 부교수
*정회원(교신저자), 충남연구원 지역도시연구부 연구위원
Corresponding AuthorJun-Hong Im, Dept. of Regional & Urban Research, ChungNam Institute, 73-26 Yunsuwon-gil Gongju-si Chungnam Province, Korea. E-mail: jhim0212@empas.com
25 August 2018. pp. 23-30
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Abstract

This study empirically analyzes the influence of abandoned homes on housing prices in the neighborhood. Vacant homes, especially abandoned homes deteriorate amenities for living and decrease the price of housing units in the neighborhood because they harm the view and become the place of crime. However, since the decision to abandon homes is made theoretically when the value of a home is smaller than its maintenance costs, the housing price would affect the number of abandoned homes in the neighborhood. According to the empirical results of the study based on two-stage least square estimation in order to take into account the endogeneity, the average price of housing units in the neighborhood falls on average by 120 thousand Korean Won when the ratio of abandoned homes to all housing units in the city, county or ward rises by its standard deviation (i.e., 0.64%). Thus, because policy support to improve the ability to re-use the abandoned homes (e.g., re-building or conversion of usage) would increase the housing price and thus it contribute the public finance via property tax, it is required to obtain the feasibility of the policy through the analysis on benefits and budgets invested on the related policy.

Keywords
Abandoned Homes
Housing Price
Hedonic Model
키워드
폐가
주택가격
헤도닉 모형
References

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Information
  • Publisher :The Korean Housing Association
  • Publisher(Ko) :한국주거학회
  • Journal Title :Journal of the Korean Housing Association
  • Journal Title(Ko) :한국주거학회논문집
  • Volume : 29
  • No :4
  • Pages :23-30
  • Received Date : 2018-04-20
  • Revised Date : 2018-05-21
  • Accepted Date : 2018-06-25
  • DOI :https://doi.org/10.6107/JKHA.2018.29.4.023
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