Volume
27, Number 4, 2005 of the Journal of Real Estate Research
Factors Affecting
Housing Modifications and Housing Pricing: A Case Study of Four Residential
Neighborhoods in Haifa, Israel
Professor Boris A. Portnov
Department of Natural Resources & Environmental Management,
Faculty of Social Sciences, University of Haifa, Mount Carmel, Haifa,
E-mail: portnov@nrem.haifa.ac.il |
Professor Yakov Odish
Department of Geography, Faculty of Social Sciences,
Hebrew University of Jerusalem
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Professor Larissa Fleishman
Department of Geography, Faculty of Social Sciences,
Hebrew University of Jerusalem
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Abstract: The
relationships among three groups of variables - environmental conditions
in residential neighborhoods, post-occupancy housing changes and
modifications (HCMs), and the
market values of residential properties - are investigated. While
traditional hedonic modeling assumes the existence of direct links
between environmental factors and property values, this paper suggests
that such links are indirect and work through the investment decisions
of homeowners, who choose to invest (or not to invest) in the
maintenance and/or expansion of their properties. To verify this
assumption, HCMs accumulated in four residential neighborhoods in Haifa,
Israel are analyzed. The findings indicate a fairly strong association
between environmental factors, building characteristics, rehabilitation
activity and property values in these neighborhoods. The paper suggests
an extra benefit for improving the environment, due to the dynamic
process that may cause further investment.
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