Housing Price Appreciation Effects of Elevator Installation in Old Residential Areas: Empirical Evidence Based on a Multiperiod DID Model

Abstract

Scientific measurement of the appreciation effect of house prices after the installation of elevators in old residential areas would help build a reasonable urban renewal investment mechanism. Based on the transaction data of second-hand houses in old residential areas with elevators installed in Beijing from 2016 to 2021, a multiperiod DID model is constructed to measure the appreciation effect, dynamic effect, and heterogeneity effect brought by the installation of elevators and to explore the mechanism of the appreciation effect. The research results show that, overall, the installation of elevators boosts the house prices of the entire community, and the appreciation effect appears in advance due to good market expectations. However, the effect of house prices varies by floor. The higher the floor, the greater the appreciation of house prices, while low-rise residential buildings are depreciated by the installation of elevators. Mechanistic research shows that the appreciation of house prices on high floors is mainly due to the improvement in the living environment, and factors such as noise and poor lighting lead to depreciation on lower floors. The results of quantile regression analysis show that the appreciation effect brought by the installation of elevators increases with the increase in the residential value.