Valuating residential properties nearby social housing
The aim of this research was to analyse the effect of social houses on the neighbourhood attractiveness. Neighbourhood attractiveness is reflected by residential property prices because homebuyers will bid up for the most desirable places. The literature review describes the impact of multiple characteristics on the valuation of residential properties. The characteristics are: Structural, Locational, Neighbourhood and Environmental. An explanation of their influence on the valuation of residential properties is given for each category. Thereafter, the measurement techniques are described. Subsequently, the impact of social houses is explained. Social houses seem to have a negative impact on the valuation of residential properties. Tenants of social houses have more problems, and a high concentration of social houses is seen as problematic. The data of social houses is obtained from the municipality of Rotterdam and Maaskoepel (umbrella organisation for housing associations in Rotterdam) and geographical information software made it possible to link the data to residential property prices. An OLS panel regression with Entity and Time fixed effects is used to analyse theses effects. It resulted in a negative effect of the amount of social houses in the immediate vicinity on the valuation of residential properties. This effect decreases over distance. The effect of the share of social houses in a neighbourhood on the valuation of residential properties is unsure. The outcomes of different models are not in line with each other.