Abstract
The importance of location is well known in the literature on real estate valuation. Our study extends this body of literature by being the first to examine empirically the effect on the selling price of single-family residential properties when they abut a golf course. We determine the incremental effect on the sales price of houses on the golf course by fitting a standard hedonic pricing model to a sample of 717 sales transactions drawn from a sub-urban area of a large city. We employ a matched-pair research design to hold constant the price effects of other location factors on these golf course properties. Our results indicate that a golf course location adds 7.6 percent to a property's sales price. We believe this finding is of interest to developers in their design of a golf course subdivision and to appraisers who wish to make location-specific value adjustments of golf course properties.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Asabere, P.K. (1990). “The Value of a Neighborhood Street with Reference to the Cul-de-Sac,”Journal of Real Estate Finance and Economics 3, 185–193.
Buck, A.J., J. Deutsch, S. Hakim, et al. (1991). “A Von Thunen Model of Crime, Casinos and Property Values in New Jersey,”Urban Studies 28, 673–686.
Clotfelter, C.T. (1975). “The Effect of School Desegregation on Housing Prices,”The Review of Economics and Statistics 57, 446–451.
Correll, M.R., J.H. Lillydahl, and L.D. Singell. (1978). “The Effects of Greenbelts on Residential Property Values: Some Findings on the Political Economy of Open Space,”Land Economics 54, 207–217.
Gamble, H.B., and R.H. Downing. (1982). “Effects of Nuclear Power Plants on Residential Property Values,”Journal of Regional Science 22, 457–478.
Harrison, D., and D. Rubinfeld. (1978). “Hedonic Housing Prices and Demand for Clean Air,”Journal of Environmental Economics and Management 5, 81–102.
Hellman, D.A., and J.L. Naroff. (1979). “The Impact of Crime on Urban Residential Property Values,”Urban Studies 16, 105–112.
Hughes, W.T., and C.F. Sirmans. (1992). “Traffic Externalities and Single-Family House Prices,”Journal of Regional Science 32, 487–500.
Jud, G.D. (1985). “A Further Note on Schools and Housing Values,”AREUEA Journal 13, 452–562.
Kennedy, P.E. (1981). “Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations,”American Economic Review 71, 801.
Kinnard, W., and Geckler, M. (1991). “The Effects on Residential Real Estate Prices from Proximity to Properties Contaminated with Radioactive Materials,”Real Estate Issues 16, 25–36.
Mieszkowski, P., and A. Saper. (1978). “An Estimate of the Effects of Airport Noise on Property Values,”Journal of Urban Economics 5, 425–440.
Nelson, J.P. (1977). “Accessibility and the Value of Time in Commuting,”Southern Economic Journal 43, 1321–1324.
Nelson, J.P. (1978). “Residential Choice, Hedonic Prices, and the Demand for Urban Air Quality,”Journal of Urban Economics 5, 357–369.
Nelson, J.P. (1980). “Airports and Property Values: A Survey of Recent Evidence,”Journal of Transport Economics and Policy 14, 37–52.
Nelson, J.P. (1981). “Three Mile Island and Residential Property Values: Empirical Analysis and Policy Implications,”Land Economics 57, 363–372.
Nourse, H.O. (1970). “The Effect of Air Pollution on House Values,”Land Economics 46, 435–446.
Richardson, H.W. (1977). “On the Possibility of Positive Rent Gradients,”Journal of Urban Economics 4, 60–68.
Rosen, S. (1974). “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition,”Journal of Political Economy 82, 34–55.
Sirmans, G.S., and C.F. Sirmans. (1991). “Rents, Selling Prices and Financing Premiums,”Urban Studies 28, 267–276.
Sirmans, G.S., S.D. Smith, and C.F. Sirmans. (1983). “Assumption Financing and Selling Price of Single-Family Homes,”Journal of Financial and Quantitative Analysis 18, 307–317.
Thomas Guide for San Diego County. (1993).
Weicher, J., and R. Zerbst. (1973). “The Externalities of Neighborhood Parks: An Empirical Investigation,”Land Economics 49, 99–105.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Do, A.Q., Grudnitski, G. Golf courses and residential house prices: An empirical examination. J Real Estate Finan Econ 10, 261–270 (1995). https://doi.org/10.1007/BF01096941
Issue Date:
DOI: https://doi.org/10.1007/BF01096941