abstract: Transportation infrastructure in urban areas has significant impacts on socio-economic activities, land use, and real property values. This dissertation proposes a more comprehensive theory of the positive and negative relationships between property values and transportation investments that distinguishes different effects by mode (rail vs. road), by network component (nodes vs. links), and by distance from them. It hypothesizes that transportation investment generates improvement in accessibility that accrue only to the nodes such as highway exits and light rail stations. Simultaneously, it tests the hypothesis that both transport nodes and links emanate short-distance negative nuisance effects due to disamenities such as traffic and noise. It also tests the hypothesis that nodes of both modes generate a net effect combining accessibility and disamenities. For highways, the configuration at grade or above/below ground is also tested. In addition, this dissertation hypothesizes that the condition of road pavement may have an impact on residential property values adjacent to the road segments. As pavement condition improves, value of properties adjacent to a road are hypothesized to increase as well. A multiple-distance-bands approach is used to capture distance decay of amenities and disamenities from nodes and links; and pavement condition index (PCI) is used to test the relationship between road condition and residential property values. The hypotheses are tested using spatial hedonic models that are specific to each of residential and commercial property market. Results confirm that proximity to transport nodes are associated positively with both residential and commercial property values. As a function of distance from highway exits and light rail transit (LRT) stations, the distance-band coefficients form a conventional distance decay curve. However, contrary to our hypotheses, no net effect is evident. The accessibility effect for highway exits extends farther than for LRT stations in residential model as expected. The highway configuration effect on residential home values confirms that below-grade highways have relatively positive impacts on nearby houses compared to those at ground level or above. Lastly, results for the relationship between pavement condition and residential home values show that there is no significant effect between them. Some differences in the effect of infrastructure on property values emerge between residential and commercial markets. In the commercial models, the accessibility effect for highway exits extends less than for LRT stations. Though coefficients for short distances (within 300m) from highways and LRT links were expected to be negative in both residential and commercial models, only commercial models show a significant negative relationship. Different effects by mode, network component, and distance on commercial submarkets (i.e., industrial, office, retail and service properties) are tested as well and the results vary based on types of submarket. Consequently, findings of three individual paper confirm that transportation investments mostly have significant impacts on real-estate properties either in a positive or negative direction in accordance with the transport mode, network component, and distance, though effects for some conditions (e.g., proximity to links of highway and light rail, and pavement quality) do not significantly change home values. Results can be used for city authorities and planners for funding mechanisms of transport infrastructure or validity of investments as well as private developers for maximizing development profits or for locating developments. / Dissertation/Thesis / Doctoral Dissertation Geography 2016

The first essay developed a respondent model of Bayesian updating for a double-bound dichotomous choice (DB-DC) contingent valuation methodology. I demonstrated by way of data simulations that current DB-DC identifications of true willingness-to-pay (WTP) may often fail given this respondent Bayesian updating context. Further simulations demonstrated that a simple extension of current DB-DC identifications derived explicitly from the Bayesian updating behavioral model can correct for much of the WTP bias. Additional results provided caution to viewing respondents as acting strategically toward the second bid. Finally, an empirical application confirmed the simulation outcomes. The second essay applied a hedonic property value model to a unique water quality (WQ) dataset for a year-round, urban, and coastal housing market in South Florida, and found evidence that various WQ measures affect waterfront housing prices in this setting. However, the results indicated that this relationship is not consistent across any of the six particular WQ variables used, and is furthermore dependent upon the specific descriptive statistic employed to represent the WQ measure in the empirical analysis. These results continue to underscore the need to better understand both the WQ measure and its statistical form homebuyers use in making their purchase decision. The third essay addressed a limitation to existing hurricane evacuation modeling aspects by developing a dynamic model of hurricane evacuation behavior. A household’s evacuation decision was framed as an optimal stopping problem where every potential evacuation time period prior to the actual hurricane landfall, the household’s optimal choice is to either evacuate, or to wait one more time period for a revised hurricane forecast. A hypothetical two-period model of evacuation and a realistic multi-period model of evacuation that incorporates actual forecast and evacuation cost data for my designated Gulf of Mexico region were developed for the dynamic analysis. Results from the multi-period model were calibrated with existing evacuation timing data from a number of hurricanes. Given the calibrated dynamic framework, a number of policy questions that plausibly affect the timing of household evacuations were analyzed, and a deeper understanding of existing empirical outcomes in regard to the timing of the evacuation decision was achieved.

The deregulation of the financial markets that started over two decades ago in the developed countries has led to increased house prices and loan to value ratios. Home owners in western countries have over the last two decades steadily decreased their savings and at the same time increased the size of their mortgages and the amount of leverage used to purchase their homes. This development has increased the financial risk for homeowners which recently became clear in the United States when prices on homes started to fall rapidly in 2007. Due to this development Finansinspektionen in Sweden has enforced new regulation on mortgage lending making it more expensive for home owners to use high leverage ratios. Finansinspektionen is responsible for consumer protection in terms of financial products and the new regulation aims to protect mortgage borrowers. Finansinspektionen suggests that an insurance that protects the borrower from loss could be used as an alternative to the regulation restricting the amount of leverage. Finansinspektionen also mentions the Canadian mortgage market as an example where compulsory mortgage insurances are enforced today. In Canada the borrower must take out a mortgage insurance when the mortgage exceeds 80 percent of the house value. However, we find that the Canadian mortgage insurance system would not fulfil the aim of Finansinspektionen’s regulation. The Canadian mortgage insurances are constructed to protect the lender against default and there purpose was initially to increase lending. When examining the basic structure of mortgage and home value insurance products we find that such products and systems are complicated to construct to match the Finansinspektionen requirements and purpose due to issues such as moral hazard, adverse selection, price, willingness to pay and systemic risk.

Byggnader och dess användare står för upp emot en tredjedel av jordens förbrukade naturresurser och 40 procent av jordens totala energiförbrukning. För att spara på jordens resurser och minska energiförbrukningen är det viktigt att finna byggnadslösningar som inte belastar klimatet ytterligare. Idag efterfrågas hållbara byggnader allt mer av hyresgäster vilket innebär att fastighetsägarna, för att vara konkurrenskraftiga, måste göra investeringar för att miljöklassificera sina byggnader. Miljöbyggnad är ett sätt att miljöcertifiera både nyproducerade och befintliga byggnader. Systemet baseras på svenska bygg- och myndighetsregler samt svensk byggpraxis och är till för att skapa miljömässigt hållbara byggnader. Miljöbyggnad är indelad i fyra klassificeringsnivåer; KLASSAD, BRONS, SILVER och GULD, där BRONS i flera utav fallen motsvarar Boverkets byggregler (BBR). Certifieringen baseras på manualer med tre områden; energi, inomhusmiljö och material. Detta examensarbete undersöker om en miljöcertifiering enligt Miljöbyggnad klassificeringsnivå GULD innebär en merkostnad i jämförelse med BBRs krav. Arbetet har dessutom undersökt om miljöcertifieringen generarar i något slags mervärde och om de eventuella merkostnaderna för certifikatet understiger detta. Examensarbetet baseras på byggnaden Kvarteret Skeppshandeln 1 i Hammarby Sjöstad som är projekterad och producerad för att uppnå klassificeringsnivå GULD. / Buildings and its users is responsible for up to a third of the world consumed natural resources and 40 percent of the world's total energy consumption. To save the resources of the earth and reduce energy consumption, it is important to find building solutions that do not burden the climate further. Today the sustainable buildings is more requested then before of tenants, which means that in order to be competitive the property owners must make investments to environmental classify their buildings. Miljöbyggnad is a way of environmental certification for both newly constructed buildings and existing buildings. The system is based on the Swedish construction rules, government regulations and Swedish building practice. The system helps the building industry to create environmentally sustainable buildings. Miljöbyggnad is divided into four levels of classification; CLASSIFIED, BRONZE, SILVER and GOLD. In several cases BRONZE and Boverkets Byggregler (BBR) coincides with each other. The certification is based on manuals with three main areas; energy, indoor environment and materials. The purpose of this report is to investigate how much it will cost to classify a specific new building according to Miljöbyggnad category GOLD, compared with what it would cost to build the same building according to BBR´s requirement for new buildings. The project will also examine whether the costs of environmental classification according to Miljöbyggnad are lower than the value that the classification provides. The survey are based on the building Skeppshandeln 1 located in Hammarby Sjöstad, the building is planned and produced to achieve category GOLD.

År 2010 genomfördes en ny lag där inlösen av mark ersätts med 125% av marknadsvärdet. Som utgångspunkt försöker markförvärvaren nå en överenskommelse med berörda fastighetsägare. Når man ingen överenskommelse beslutas därefter om ersättningen i domstol. Det tycks dock vara oklart hur mycket ersättningen i praktiken uppgår till vid överenskommelser, då olika aktörer tenderar att erbjuda en ersättning utöver det lagstadgade. Dessutom återfinns alltid en värderingsosäkerhet och därför en viss risk för markförvärvare att domstolen fastställer ett högre marknadsvärde än vad aktören själv värderat, och på så vis tvingas betala en högre ersättning. Det är därför intressant att undersöka om markförvärvare erbjuder ett ekonomiskt tillägg för att enklare nå en överenskommelse, och undvika att domstolen beslutar om en högre ersättning. Syftet med denna studie är att undersöka om markförvärvare erbjuder en högre ersättning än det lagstadgade på grund av att fastighetsägare kan överklaga ersättningen och fastställa ett högre marknadsvärde i domstol. För att besvara syftet har en enkät- och intervjustudie genomförts med aktörer på marknaden som frekvent arbetar med markförvärv och har god erfarenhet inom ämnet. På så vis tillfrågas aktörerna direkt hur de ställer sig till frågan och hur de agerar i praktiken. Resultatet av studien visar att en övervägande del av alla respondenter inte erbjuder något ekonomiskt tillägg utöver det lagstadgade. Dessutom upplever majoriteten av dem tillfrågade aktörerna på marknaden inte heller någon risk att ett högre marknadsvärde fastställs i domstol. Aktörerna är säkra i deras värdering och anser att de värderar bra i förhållande till domstol. De deltagande i studien tycks alltså inte ta i hänsyn att domstolen kan fastställa ett högre marknadsvärde som något som skulle leda till att de erbjuder ett ekonomiskt tillägg. / In 2010 a new law was implemented in which acquisition of land is compensated with 125% of market value. As a starting point the land acquirer tries to seek an agreement with the concerned property owners. If no agreement is reached, the compensation will be decided in court. However, it seems unclear how great the compensation in terms of agreements is in practice, since different operators tend to offer compensation more than the statutory amount. In addition, there is always an uncertainty of valuation and therefore a certain risk for the land acquirer that the court determines a higher market value than the acquirer himself, and thus must pay a higher compensation. It is therefore interesting to investigate whether operators offer a financial supplement to make it easier to reach an agreement and to avoid the court deciding on a higher compensation.  The purpose of this study is to investigate whether operators offer higher compensation than statutory because property owners can appeal against the amount of compensation and determine higher market value in court.  In order to answer the purpose, a survey and an interview study has been conducted with operators in the market who frequently work with land acquisition and have good experience in the subject. In this way, the operators are directly asked how they respond to the question and how they act in practice.  The result of the study shows that a majority of the respondents do not offer any financial supplement in addition to the statutory. In addition, most of the respondents on the market also do not perceive the risk of a higher market value being determined in court. The operators are confident in their valuation and consider that they value good in relation to the court. Thus, the participants in the study seem to not take into regard that the court can establish a higher market value as something that would lead them to offer a financial supplement.

Flooding has the potential to have significant impact on the value of properties depending on the level of inherent vulnerability. Experts argue that it is not the actual risk but the perception of risk among property holders that influences vulnerability of value. The hypothesis that changing perception of flood risk could make property value vulnerable in the market is the main focus of the research. This dimension of research has received very low attention in commercial property literature. The existing knowledge base of flooding and property value reveals that focus has been largely associated with residential properties. Conceptual understanding of the extent and scale of the effect of flooding on the vulnerability of property value of commercial properties would be worthwhile for relevant stakeholders. The research methodology follows a quantitative approach with sequential application: of literature review, conceptual model generation, data collection from primary and secondary sources with remote questionnaire survey of selected study areas in the UK. The conceptual model was operationalised using analysis and interpretation of the collected data and finally cross validated with secondary data gained from commercial real estate experts . The strength of this research lies in the conceptualisation of the subject matter of property value in the context of flood vulnerability. This work provides innovative conceptual insight towards business vulnerability and vulnerability of value. The variables contributing towards vulnerability were hierarchically ranked using both collected data and deductive methods. The patterns of impact and recovery analysis emphasized that within the commercial sector indirect effects of flooding should be given equal importance with direct damages. The implication of perception on the vulnerability of property value showed a slightly different picture from business vulnerability in the chosen study areas when differentiated based on flood experience. In a nutshell the study reflected that the commercial property sector does not take flooding as one of their priorities. This is in part due to differential attitude towards risk of the population within the flood plain based on their knowledge and experience of flooding. The perception of stakeholders towards vulnerability of value can change with increasing magnitude and severity of floods and it is possible that the implications on market value of commercial properties will be visible in the future. Practitioners and researchers will find this study useful in developing an understanding of the vulnerability of commercial property value in the context of changing flood risk.

Since the Tax Reform Act of 1986, Low-Income Housing Tax Credit (LIHTC) has been a major source of affordable housing provision for low to middle-income families. Meanwhile, growing concern about potential decrease of property value in neighborhoods has been the main obstacle for most of the affordable housing projects. As a result, LIHTC projects are facing backlash from neighborhoods near the potential affordable housing projects – NIMBYism (Not In My Back Yard). However, during decades, it has been always controversial whether LIHTC is actually affecting neighborhood property value in negative way. This study tests the hypothesis that the LIHTC projects affect negatively on neighborhood single-family home property value in Austin, Texas. Single-family homes within 2000-feet radius from the selected LIHTC projects were analyzed based on the Travis County Appraisal District annual appraisal values between 1993 and 2008. / text

Community development corporations (CDCs) have become important vehicles for revitalizing urban neighborhoods. These small, multi-disciplinary groups must adapt quickly to changing conditions in the industry. The author interviewed CDC directors and other industry experts from Richmond, Virginia and Atlanta, Georgia to identify and compare contemporary challenges, opportunities and adaptations among community developers. The cost and availability of land, inadequate funding and organizational capacity were significant barriers in both cities. In Richmond, increasing competition, NIMBY and staff retention were other barriers. In Atlanta, securing community buy-in, the permitting process, and the growing need for affordable housing were other barriers. Increasing public interest in affordable housing, the need for new housing types and increased housing demand present new opportunities. Atlanta also has new public policies supporting housing. In response, CDCs in both cities are expanding their geographic areas, developing partnerships, and adding new development products. Atlanta CDCs also reported expanding non-development activities.

Light Rail Transit (LRT) has been getting more attention in U.S. cities due to its socio-economic benefits, such as reducing pollution and congestion, as well as promoting regional economic development. However, huge capital costs remain an obstacle to the construction of a new light rail system. For this reason, cities in the planning phases of LRT want to use value capture tools to finance transit construction and operation. In theory, any improvement in a transportation structure that increases accessibility and reduces transportation cost can be capitalized into property values in an area. In turn, governments levy taxes on a portion of the additional value of adjacent properties. This study, however, aims to empirically examine whether value capture is possible in the recession when property and land values continue to decrease. The study uses the case of the DART Green Line, which started to run in 2009 just after a financial crisis in the U.S. The 5745 residential parcels are analyzed with using a hedonic price model in order to detect the Green Line’s influence on residential values before and after the recession. To enhance the proficiency of the regression, this study includes several structure and neighborhood characteristics. The statistical results found the Green Line’s benefits on residential values both in the pre-Green Line period (before the recession) and the post-Green Line period (during the recession). It is noteworthy there are still positive influences of transit accessibility on residential values even in the unstable housing market, although the magnitude of the variable has diminished compared to the pre-Green Line period. / text

This diploma thesis deals with the valuation of real estate for the needs of insurance companies. First the terms that are associated with the valuation of real estate and insurance are defined and the individual valuation methods are described. Problems related to the aim of this work are further formulated here. This is followed by an analysis of the city of Břeclav, a detailed description of selected real estate for valuation. The following are calculations of cost valuation of individual buildings, direct comparison method of the housing unit and determination of minimum insurance values from individual insurance companies and these findings they are then compared. The final part contains a summary and comparison of the results.