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The Economics of Style: Measuring the Price Effect of Neo-Traditional Architecture in Housing

  • Netherlands Assessment Agency (PBL)

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Vintage effects have received considerable attention from economists in the context of house prices. Although strongly related, the impact of architectural building styles on prices has not been studied yet. Using a cross-sectional hedonic price analysis including building styles of recently developed homes in the Netherlands we find a significant price premium for housing with neo-traditional architecture. Extensive intervention by local authorities on the supply side of the housing market seems the most probable explanation of this effect. The decreasing price premium over time reflects the impact of supply restrictions on price, but also indicates that style does matter.
Original languageEnglish
Pages (from-to)7–27
Number of pages20
JournalReal Estate Economics
Volume45
Issue number1
DOIs
Publication statusPublished - 2017
Externally publishedYes

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