Pricing Residential Amenities: The Value of a View

  • Earl D. Benson
  • Julia L. Hansen
  • Arthur L. SchwartzJr.
  • Greg T. Smersh

Abstract

This study provides estimates of the value of the view amenity in single-family residential real estate markets. A focus on Bellingham, Washington, a city with a variety of views, including ocean, lake, and mountain, allows for differentiation of the view amenity by both type and quality. Results from a hedonic model estimated for several recent years suggest that depending on the particular view, willingness to pay for this amenity is quite high. The highest-quality ocean views are found to increase the market price of an otherwise comparable home by almost 60%; the lowest-quality ocean views are found to add about 8%. For ocean views of all quality levels, the value of a view is found to vary inversely with distance from the water.

views amenity values hedonic estimation 

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Copyright information

© Kluwer Academic Publishers 1998

Authors and Affiliations

  • Earl D. Benson
    • 1
  • Julia L. Hansen
    • 2
  • Arthur L. SchwartzJr.
    • 3
  • Greg T. Smersh
    • 4
  1. 1.Department of Finance, Marketing, and Decision SciencesWestern Washington UniversityUSA
  2. 2.Department of EconomicsWestern Washington UniversityUSA
  3. 3.Department of Finance and Real EstateUniversity of South FloridaUSA
  4. 4.Department of Real EstateUniversity of FloridaUSA

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