Geerligs, Luuk (2024) Real Estate and Climate: A Comprehensive Analysis of Weather's Influence on Property Values. Master thesis.
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Final Thesis Luuk Izaak Jan Geerligs s5411696.pdf Download (2MB) | Preview |
Abstract
While practical and logistical factors are frequently the deciding factors when choosing a place to reside, studying the impact of weather, and investigating possible relationships between weather, gross rents, and housing prices offers an intriguing perspective which can provide valuable insights into the dynamics of real estate markets. This study investigates relationships between climate and housing prices, analyzing differences between rental and owner-occupied markets. The study reveals homeowners are willing to pay more for homes in areas with higher January precipitation, indicating they place a premium on this specific climate condition. Cooling and heating degree days show negative correlation with housing prices and rents, validating the assumption that most people prefer to avoid temperature extremes. The increased sensitivity among homeowners, compared to renters, points to a more intricate connection between weather factors and the housing decisions of buyers versus renters. In summary, weather significantly impacts housing markets, with homebuyers showing greater willingness to pay for preferred climate conditions.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Liu, X. and Daams, M.N. |
| Date Deposited: | 07 Feb 2024 11:14 |
| Last Modified: | 07 Feb 2024 11:14 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4455 |
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