ABSTRACT
This chapter examines the effect of certain neighborhood factors – namely jurisdictional-level infrastructure and services – on housing prices. Several studies have shown that the transportation infrastructure – in the form of a network of roads or the availability of public transportation such as buses or rail – significantly impacts housing prices. The value of a housing unit – whether single-family or multifamily, owner occupied or rental – depends upon several sets of factors. Estimating the impact of each type of infrastructure and service on housing prices enables observation of which is valued most by residents. The increase or decrease in the price of housing attributable to a specific type of public spending, in a purly economic sense, can be viewed as the monetary value of the benefit derived from the use of that particular form of infrastructure or service.
