Proximity, Neighbourhood and the Efficacy of Exclusion

This paper uses data on over 2800 house sales in Jacksonville, Florida, to estimate the impact of neighbourhood characteristics on house prices. A GIS progamme is used to develop neighbourhood characteristics that are unique to each observation, thereby allowing the evaluation of the impact of neighbourhood attributes in proximity to the dwelling. Except for population density, the effects of neighbourhood characteristics on property values do not decay over a 3-4-mile distance from the dwelling and the results suggest that neighbourhood characteristics over a large geographical area may have a significant effect on property values. Because the study area is a single jurisdiction, the results suggest that the housing market may generate the Tiebout-like exclusion that is usually associated with fiscal fragmentation.