The price of beauty : biodiversity effects on residential housing markets / Michael Koetter, Birte Winter, Fabian Woebbeking ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association

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The price of beauty : biodiversity effects on residential housing markets

Discovery

1941730809

URN

urn:nbn:de:gbv:3:2-123456789-1177838

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Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, 2025

Umfang

1 Online-Ressource (III, 58 Seiten, 3,39 MB) : Karten, Diagramme

Ausgabevermerk

Sprache

eng

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Literaturverzeichnis: Seite 29-37

Inhaltliche Zusammenfassung

We study how and why local biodiversity affects residential property values. Leveraging remotely sensed greenness indicators and a novel dataset of granular property listings, we examine how changes in vegetation load on real estate prices. Hikes in greenness are associated with higher listing prices, fewer properties listed, and reduced liquidity in housing markets. These results suggest that price hikes in housing markets are driven by supply-side constraints instead of a “greenium” that buyers might be willing to pay due to innate preferences. Exogenous zoning shocks to foster biodiversity corroborate the presence of supply side constraints as price drivers in residential housing markets. Our findings emphasize the need to calibrate biodiversity and (social) housing policy objectives more explicitly.

Schriftenreihe

IWH discussion papers ; 2025, no. 21 (November 2025) ppn:837399270

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