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Abstract

This study investigates how a neighborhoods proximity to the Golden Gate Bridge impacts rental prices in San Francisco. This was done utilizing a hedonic pricing model and regression analysis. Using data from Craigslist listing posts from 2000 – 2018, the relationship between neighborhoods, property attributes, and rental costs were examined. The findings revealed that neighborhoods closer to the iconic bridge do result in higher rental prices, furthermore properties holding views of the bridge will have higher rental prices. The average of all properties showcased that there was a $28.16 decrease in rental price per additional incremental distance from the bridge. The average of all properties had a $1801.29 increase in price if the apartment had a view of the Golden Gate Bridge. Additionally, regional variations impact the influence of proximity to the bridge on rental prices, with the northern region exhibiting the most pronounced effect. The northern region above the bridge had a $139.07 decrease in price per additional incremental neighborhood distance. The northern region also had the highest price influence from having a view at a $2,774.80 increase. These insights provide valuable information for real estate professionals, residents, and policy makers thus highlighting the significance that landmarks and tourist attractions shape permanent residents housing. These findings can impact further development in the housing market as they provide more insight to the dynamics of housing preferences.

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