1 June Job Accessibility Effects on Apartment Rentals Yu-Chun Cheng National Taiwan University Department of Geography Graduate Student

2 Outline 1. Introduction 2. Methodology and Design 3. Data 4. Result 5. Discuss

1 Background 2 Introduction 3 1. Research Bias: the transaction price has the investment demands Osland & Thorsen (2008) employed the 2788 samples of residential transaction price and accessibility index. Osland & Thorsen （ 2013 ） set the Spatial Durbin Model to explain the spatial characters 。 Transaction Price Consumer Demands Investment Demands Rental Price

2 Introduction 4 2. Ignore the Sub-market in the residential real estate market Levine (1998) shows that different accessibility would decide different land cost and transportation cost. Adair et al. （ 2000 ） discuss that job accessibility affect totally residential market and sub-market by different price Job accessibility Residential Price Sub-market by different price Sub-market by building price Other sub-markets Different Transportation Mode 1 Background

2 Purpose 1 5 Introduction 1. Research gap Job accessibility Rental price Transaction price Sub-market 2. Research purpose This study empirically investigates the job accessibility effects on apartment rentals using sample data in Taipei Metropolitan area, Taiwan. This study examines the effects of job accessibility on apartment rentals for different sub-markets.

Methodology and Design 1 Topic Discuss Private Trans. Public Trans. Elevator building Non-elevator building Suite Room House Commutes trans. mode choice Different background of job and salary property type Building Type Job Accessibility. Rental Price.

3 7 2 Hypothesis 1 Methodology and Design H1: job accessibility positively affects apartment rentals. H2: the effects of job accessibility on apartment rentals are different among various transportation modes. H3: the effects of job accessibility on apartment rentals are different among various building types. H4: the effects of job accessibility on apartment rentals are different among various property types. H5: the effects of job accessibility on apartment rentals are different among various rentals. H6: the impact of job accessibility by public transportation on apartment rentals is greater than the impact of job accessibility by private transportation on apartment rentals Rental Price q(0.1) Job accessibility Pub. Trans. Internal features Features of housing External features Private Trans, q(0.25) q(0.5)q(0.75)q(0.9)

8 1 3 Model 2 Methodology and Design 【 Control variables 】 Building type property type Bedroom, Kitchen, Restroom Located floor House area The house of the year Distance to main road Distance to bus stop Distance to the railway Distance to the station

9 1 3 Model 2 Methodology and Design 1. The linear regression for full sample 2. The quantile regression for full sample

Model 2 Methodology and Design 3. Job accessibility index Commuting time, Distance cost, Parking cost Commuting time, Wating time, Fee, Uncomfortable cost

11 Data 1 Background 2 3 Residential market High Low Prediction of return on investment High capital gain Investment demand ＞ Consumer demand Low capital gain Investment demand ＞ Consumer demand P/I ratio High Prefer to RENT P/I ratio Low Prefer to BUY

12 Data 1 Background 2 3

13 Data 2 3 【 Empirical space 】 1 Background

14 2 Variables 3 1 Data External Featuresdistance to main road2013+ distance to bus stop2013- distance to the station2013- distance to the railway2013- Variable itemsYearExpected sign Rental price2009 Job Accessibility Job accessibility by car2009+ Job accessibility by motor2009+ Job accessibility by public transportation2009+ overall job accessibility2009+ Internal Featuresthe property type2009+ the building type2009+ the numbers of the bedroom2009+ the number of the kitchen2009+ the number of the restroom2009- located floor2009- house area2009+ the house of the year2009+

15 3 Descr. statistical Sample distribution 1 2 Data

16 Description statistical of rental 1 2 Data 3 Descr. statistical

17 Result 2 Original Model significance VIF Basic Model Extend model (Linear) Extend model (Quantile) 1. Analysis of Correlation Correlation coefficient （ continuous variable ）： Using the measurement of Pearson product-moment correlation coefficient. Contingency Table Analysis （ categorical variable ）： Using the measurement of chi-square test. 2. Decision of independent variables: X n, X n 1/2, X n 2, X n 3, ln X n 3. Test of independent variables distance to the stationdistance to the railway High correlation 1 Model calibrat.

18 Result 1 Model calibrat Basic and extend model for linear Overall Job Accessibility Exp. Sign A-1 B-1 B-2 ElevatorNon-elevatorSuiteRoomHouse Adj R the property type 1 ＋＋ *** the property type 2 ＋＋ *** the building type ＋＋ *** XX the numbers of the bedroom ＋ XXXX ＋*＋* X the number of the kitchen ＋＋ *** X XX the number of the restroom － XXXXX ＋*＋* located floor ＋ XXXXX －*－* house area －－ *** X the house of the year －－ *** X XX Distance to main road － X － *** ＋*＋* ＋ *** －*－* －*－* Distance to bus stop － XXXXXX Distance to station －－ *** Overall job accessibility ＋＋ *** XX Geoghegan et al.(1997) ： Uncomfortable for near the main road

19 Result 2 4. Basic and extend model for linear Exp. Sign A-1 B-1 B-2 ElevatorNon-elevatorSuiteRoomHouse Adj R Job accessibility by motor ＋＋ *** Job accessibility by car ＋＋ *** X Job accessibility by public transportation ＋＋ *** ＋ ** ＋ *** X ＋*＋* 1 Model calibrat.

20 Result 2 5. Extend model for quantile Model A-1 : Overall job accessibility 1 Model calibrat.

21 Result 2 Job accessibility by motor Job accessibility by car Job accessibility by public transportation 1 Model calibrat. 5. Extend model for quantile Model A-2 : Different transportation modes of job accessibility

22 Result 2 Hyp. Test 1 H1: job accessibility positively affects apartment rentals. H2: the effects of job accessibility on apartment rentals are different among various transportation modes. Overall Market J.A. by car J.A. by motor J.A. by pub. The effects are different

23 Result 1 H3: the effects of job accessibility on apartment rentals are different among various building types. Rentals of Elevator Building Overall job accessibility Job accessibility by motor Job accessibility by car Job accessibility by pub. Trans. Rentals of Elevator Building Rentals of Non-elevator Building The effects are different The effects are same 2 Hyp. Test

24 Result 1 H4: the effects of job accessibility on apartment rentals are different among various property types. Overall J.A. Suite Room House J.A. by motor Suite Room House J.A. by car Suite Room House J.A. by Pub. Suite Room House 2 Hyp. Test The effects are different The effects are same

25 Result 1 H5: the effects of job accessibility on apartment rentals are different among various rentals. [Overall job accessibility] [Different transportation modes of job accessibility] The effects of job accessibility by motor on High rentals for q(0.9) and q(0.75) are same, others are different. The effects of job accessibility by car on High rentals for q(0.9) and q(0.75) are same, others are different. The effects of job accessibility by car on rentals are same. q(0.5) q(0.9) q(0.1) 2 Hyp. Test The effects are different

26 Result 1 H6: the impact of job accessibility by public transportation on apartment rentals is greater than the impact of job accessibility by private transportation on apartment rentals 2 Hyp. Test

27 Discuss 1 Conclusion 2 Contribution Academi c Job accessibility positively affects apartment rentals. The effects of job accessibility on apartment rentals are different among various transportation modes. Different sub-markets have different effects. Job accessibility positively affects on mid or low level rentals Job accessibility negatively affects on high level rentals In Taipei Metropolitan area, renters prefer to private transportation(especially motor). Practical 供需雙方的價格選擇參照 政府國宅選址與租金補貼政策

28 Discuss  Job accessibility index: using the traffic zone with peak time at morning to measure.  Samples ；  The distance of external features using the google map to measure have some errors. It could be measured accurately in the future.  Some features (such as service features) couldn’t be collected in this study.  This study didn’t consider the spatial variation (including the space and time) because of data limitation. 2 Limitation 1

29 The End Thank you for your attention