Estimating the Connection between Location and Property Value

Abstract

A hedonic regression model of rent values that is used to assess property values in Portland, Oregon, an urban area that has multi-centric rent gradients, is presented. The data consists of apartment rents, locations and other attributes, but a similar approach may be used to estimate the sale prices of homes or apartment buildings. Practitioners are encouraged to employ this type of model, rather than the traditional method of market sales when evaluating property.