Heterogeneous Housing Valuation
Type
working paper
Date Issued
2025-07-19
Author(s)
Abstract
Residential real estate pricing reflects individual household preferences for housing services. I investigate how households with different sociodemographic characteristics heterogeneously value specific housing attributes using 5,637 Norwegian real estate auctions. My novel private preference pressure measure identifies when bidders reveal true private valuations during competitive bidding. Employing threefold Blinder-Oaxaca decomposition across neighborhood-level income, education, age, and family status groups, I document substantial heterogeneity in housing valuation between low- and high-characteristic buyers. Exploiting stricter 2017 lending rules in a triple difference-in-difference framework, I demonstrate that asymmetric budget constraint shocks causally increase heterogeneous housing valuation under high auction pressure, challenging traditional hedonic modeling assumptions.
Language
English
Keywords
Hedonic Modeling
Housing Auctions
Residential Real Estate
Private Value Estimates
Decomposition Techniques
HSG Classification
contribution to scientific community
Refereed
No
Subject(s)