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

Neil T Coffee, Tony Lockwood, Peter Rossini, Theo Niyonsenga, Stanley McGreal

Research output: Contribution to journalArticle

Abstract

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.
Original languageEnglish
Pages (from-to)1-18
Number of pages18
JournalEnvironment and Planning B: Urban Analytics and City Science
DOIs
Publication statusE-pub ahead of print - 22 Oct 2018

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socioeconomic status
social structure
metropolitan area
occupation
principal component analysis
income
education

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abstract = "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.",
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Composition and context drivers of residential property location value as a socioeconomic status measure. / Coffee, Neil T; Lockwood, Tony; Rossini, Peter; Niyonsenga, Theo; McGreal, Stanley.

In: Environment and Planning B: Urban Analytics and City Science, 22.10.2018, p. 1-18.

Research output: Contribution to journalArticle

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