Composition and context drivers of residential property location value as a socioeconomic status measure

Research applying residential property value as a socioeconomic status measure is increasing. The literature includes several measures of residential property value socioeconomic status, all of which highlight location as an important component. This paper examines the drivers of the location component of residential property value that form the basis of its application as a socioeconomic status measure. The metropolitan area of Adelaide, South Australia, is used as a study area to analyse the composition and context embodied in residential property location value. The focus of this paper is to provide an understanding of the drivers of residential property value calculated as the relative location factor, deliberately constructed to reflect the effect on value due to location. The analysis reduced the traditional composition measures of social structure into a smaller number of factors using principal component analysis and regressed these against relative location factor. A spatial lens was applied to the results using Moran’s I to visualise the composition and context influence embodied in relative location factor. The results provided a significantly enhanced understanding of both the composition and context of socioeconomic status wealth that may be a more suitable socioeconomic status measure than the traditional composition measures of income, education and occupation. This paper provides an original interpretation of the contribution and use of residential property location value enabling a broader understanding of socioeconomic status, concluding that relative location factor provided a more informed measure of socioeconomic status, capable of enhancing social science and health research and policy formation.