Adjustments in the housing market after an environmental shock

• Verfasst von: Almer, Christian Alexander [VerfasserIn]
• Verfasst von: Boes, Stefan [VerfasserIn]
• Verfasst von: Nüesch, Stephan [VerfasserIn]
• Titel: Adjustments in the housing market after an environmental shock
• Titelzusatz: evidence from a large-scale change in aircraft noise exposure
• Verf.angabe: by Christian Almer, Stefan Boes, and Stephan Nüesch
• E-Jahr: 2017
• Jahr: 12 January 2017
• Umfang: 21 S.
• Fussnoten: Gesehen am 30.04.2018
• Titel Quelle: Enthalten in: Oxford economic papers
• Ort Quelle: Oxford : Oxford Univ. Press, 1938
• Jahr Quelle: 2017
• Band/Heft Quelle: 69(2017), 4, Seite 918-938
• ISSN Quelle: 1464-3812
• DOI: doi:10.1093/oep/gpw071
• Datenträger: Online-Ressource
• Sprache: eng
• K10plus-PPN: 1572484268

Abstract

The impact of aircraft noise on housing is a much-debated topic. To meet the increasing demand for air transportation, airports seek to expand their capacities, but studies looking at market responses to a spatial redistribution of noise pollution are scarce. Using online advertisements of rental apartments around a large European airport (ZRH) and an unexpected change in flight regulations, we investigate the post-shock dynamics in apartment rents and tenants’ search behaviour. We find that rents take about two years to stabilise to a new equilibrium value. After this period there is a constant markup (discount) for apartments exposed to less (more) aircraft noise. Moreover, the number of advertisement clicks as a proxy for search behaviour and information acquisition is significantly higher during the adjustment period. Our results have implications regarding the calculation of capitalisation effects in quasi-experimental hedonic valuations, which need to take into account off-equilibrium periods.