The Impact Of Crime On Apartment Prices: Evidence From Stockholm, Sweden
2011 (English)In: Geografiska Annaler. Series B, Human Geography, ISSN 0435-3684, E-ISSN 1468-0467, Vol. 93B, no 1, 81-103 p.Article in journal (Refereed) Published
This study uses data of about 9,000 apartment sales in Stockholm, Sweden, to assess the impact of crime on property prices. The study employs hedonic pricing modelling to estimate the impact of crime controlling for other factors (property and neighbourhood characteristics). Geographic Information System (GIS) is used to combine apartment sales by coordinates with offences, land use characteristics and demographic data of the population. The novelty of this research is threefold. First, it explores a set of land use attributes created by spatial techniques in GIS in combination with detailed geographical data in hedonic pricing modelling. Second, the effect of crime in neighbouring zones at one place can be measured by incorporating spatial lagged variables of offence rates into the model. Third, the study provides evidence of the impact of crime on housing prices in a capital city of a traditional welfare state, information otherwise lacking in the international literature. Our results indicate that apartment prices in a specific area are strongly affected by crime in its neighbouring zones, regardless of crime type. When offences were broken down by types, residential burglary, theft, vandalism, assault and robbery individually had a significant negative effect on property values. However, for residential burglary such an effect is not homogenous across space, and apartment prices in central areas are often less discounted by being exposed to crime than those in the city's outskirts.
Place, publisher, year, edition, pages
2011. Vol. 93B, no 1, 81-103 p.
GIS, hedonic modelling, offences, residential property value, spatial modelling, Stockholm
IdentifiersURN: urn:nbn:se:kth:diva-32628DOI: 10.1111/j.1468-0467.2011.00362.xISI: 000288020000005ScopusID: 2-s2.0-79952298596OAI: oai:DiVA.org:kth-32628DiVA: diva2:411651
QC 201104192011-04-192011-04-182012-01-27Bibliographically approved