caa a22 4500 477129951 CHVBK 20180405111702.0 cr unu---uuuuu 170330e19970101xx s 000 0 eng 10.1023/A:1007755932219 doi (NATIONALLICENCE)springer-10.1023/A:1007755932219 A Spatial Model of Housing Returns and Neighborhood Substitutability [Elektronische Daten] [William Goetzmann, Matthew Spiegel] This article provides a method for estimating housing indices at the local level. It develops a ""distance-weighted repeat-sales”” procedure to exploit the factor structure of the error-covariance matrix in the repeat-sales model. A distance function defined in characteristic and geographical space provides weights for the generalized least-squares model, and allows the use of all of the repeated sales in a metropolitan area to measure returns for the specific neighborhood of interest. We use distance-weighted repeat sales to estimate return indices for all zip codes in the San Francisco Bay area over the period 1980--1994. When distance is defined in terms of socioeconomic characteristics, we find that median household income is the salient variable explaining covariance of neighborhood housing returns. Racial composition and educational attainment, while significant, are much less influential. Zip-code level indices often deviate dramatically from the citywide index, depending upon income levels. This has implications for investors and lenders. Our results indicate that rates of return may vary considerably within a metropolitan area. Thus, simply using broad metropolitan area indices as a proxy for capital appreciation within a specific neighborhood may not be justified. Kluwer Academic Publishers, 1997 housing returns nationallicence distance-weighted repeat-sales method nationallicence neighborhood substitutability nationallicence Goetzmann William Yale School of Management, Box 208200, 06520-8200, New Haven, CT aut Spiegel Matthew Haas School of Business, University of California at Berkeley, USA aut The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 14/1-2(1997-01-01), 11-31 0895-5638 14:1-2<11 1997 14 11146 https://doi.org/10.1023/A:1007755932219 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1023/A:1007755932219 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Goetzmann William Yale School of Management, Box 208200, 06520-8200, New Haven, CT aut NATIONALLICENCE 700 1- Spiegel Matthew Haas School of Business, University of California at Berkeley, USA aut NATIONALLICENCE 773 0- The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 14/1-2(1997-01-01), 11-31 0895-5638 14:1-2<11 1997 14 11146 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer