House Prices, Airport Location Proximity, and Air Traffic Volume: Plus some Covid-19 Effects

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Abstract

Although house prices and airports are influenced by distinct factors that shape their evolutions, they are also intrinsically connected through the natural and built environment. Standard theory suggests that air-traffic noise and proximity to key economic hubs such as airports are of prime importance to house prices and the housing market. This study contributes to understanding the link between the housing market, airport location proximity, and air traffic. The research investigates this association across four key urban areas within New Zealand with an international airport - Auckland, Wellington, Christchurch, and Queenstown. Applying GLS regression analysis reveals that house prices, air-traffic activity, and proximity to airports within New Zealand demonstrate a statistically significant spatial effect. Moreover, we demonstrate that more air traffic helps increase house prices, which is consistent with the literature. Findings also show a U-shape relationship between distance to the airport and house prices, suggesting that airport noise and other externalities can adversely affect the housing market. Furthermore, the new Zealand housing market experienced a significant price increase during the Covid-19 pandemic, whilst the airport volume decreased during an extensive lockdown period and longer-term halting of international arrivals.
Original languageEnglish
Title of host publication29th ANNUAL PACIFIC RIM REAL ESTATE SOCIETY CONFERENCE
Pages25
Number of pages1
Publication statusPublished (in print/issue) - 16 Jan 2023
EventPacific Rim Real Estate Society Conference 2023 -
Duration: 15 Jan 2023 → …

Conference

ConferencePacific Rim Real Estate Society Conference 2023
Period15/01/23 → …

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