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Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois

Author

Listed:
  • Gabriel Ahlfeldt
  • Alexandra Mastro
Abstract
This study investigates the willingness of homebuyers to pay for co-location with iconic architecture. Oak Park, Illinois, was chosen as the study area given its unique claim of having 24 residential structures designed by world-famous American architect Frank Lloyd Wright, in addition to dozens of other designated landmarks and three preservation districts. This study adds to the limited body of existing literature on the external price effects of architectural design and is unique in its focus on residential architecture. We find a premium of about 8.5 per cent within 50-100 m of the nearest Wright building and about 5 per cent within 0-50 m. These results indicate that an external premium to iconic architecture does exist, although it may partially be attributable to the prominence of the architect.

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  • Gabriel Ahlfeldt & Alexandra Mastro, 2012. "Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois," Housing Studies, Taylor & Francis Journals, vol. 27(8), pages 1079-1099, November.
    • Handle: RePEc:taf:chosxx:v:27:y:2012:i:8:p:1079-1099
    DOI: 10.1080/02673037.2012.728575
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    3. Paul C. Cheshire & Gerard H. Dericks, 2020. "‘Trophy Architects’ and Design as Rent‐seeking: Quantifying Deadweight Losses in a Tightly Regulated Office Market," Economica, London School of Economics and Political Science, vol. 87(348), pages 1078-1104, October.
    4. Tetsuharu Oba & Douglas Simpson Noonan, 2020. "The Price of Preserving Neighborhoods: The Unequal Impacts of Historic District Designation," Economic Development Quarterly, , vol. 34(4), pages 343-355, November.
    5. Ka Shing Cheung & Chung Yim Yiu, 2022. "The economics of architectural aesthetics: Identifying price effect of urban ambiences by different house cohorts," Environment and Planning B, , vol. 49(6), pages 1741-1756, July.
    6. Mirko Moro & Karen Mayor & Seán Lyons & Richard S J Tol, 2013. "Does the Housing Market Reflect Cultural Heritage? A Case Study of Greater Dublin," Environment and Planning A, , vol. 45(12), pages 2884-2903, December.
    7. Boualam, Brahim, 2014. "Does culture affect local productivity and urban amenities?," Regional Science and Urban Economics, Elsevier, vol. 46(C), pages 12-17.
    8. Liao, Wen-Chi & Jing, Kecen & Lee, Chaun Ying Rachel, 2022. "Economic return of architecture awards: Testing homebuyers’ motives for paying more," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    9. Skripkiūnas Tomas & Navickas Valentinas, 2023. "Architectural Factors Influencing a Housing Market Value: A Theoretical Framework," Real Estate Management and Valuation, Sciendo, vol. 31(1), pages 25-35, March.
    10. Christos Evangelinos & Stefan Tscharaktschiew, 2021. "The Valuation of Aesthetic Preferences and Consequences for Urban Transport Infrastructures," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    11. Wan, Wayne Xinwei & Lindenthal, Thies, 2022. "Towards accountability in machine learning applications: A system-testing approach," ZEW Discussion Papers 22-001, ZEW - Leibniz Centre for European Economic Research.
    12. ., 2014. "Residential segregation and people sorting within cities," Chapters, in: Urban Economics and Urban Policy, chapter 3, pages 54-76, Edward Elgar Publishing.
    13. Tetsuharu Oba & Douglas Simpson Noonan, 2017. "The many dimensions of historic preservation value: national and local designation, internal and external policy effects," Journal of Property Research, Taylor & Francis Journals, vol. 34(3), pages 211-232, July.
    14. Thies Lindenthal, 2020. "Beauty in the Eye of the Home‐Owner: Aesthetic Zoning and Residential Property Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(2), pages 530-555, June.
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    16. Wadu Mesthrige Jayantha & Esther Hiu Kwan Yung, 2018. "Effect of Revitalisation of Historic Buildings on Retail Shop Values in Urban Renewal: An Empirical Analysis," Sustainability, MDPI, vol. 10(5), pages 1-18, May.

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