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The Economics of Style: Measuring the Price Effect of Neo‐Traditional Architecture in Housing
Author(s) -
Buitelaar Edwin,
Schilder Frans
Publication year - 2016
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.12137
Subject(s) - context (archaeology) , economics , price premium , architecture , style (visual arts) , vintage , hedonic index , intervention (counseling) , microeconomics , price index , willingness to pay , psychology , art , paleontology , history , archaeology , psychiatry , visual arts , biology
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.