Assessment of Urban Residential Properties: An Empirical Study of Pittsburgh
Reinhard S. Lai
AbstractThe purpose of this paper is twofold: to examine whether the current assessment practice in Pittsburgh results in systematic non-uniformity, and to test the feasibility of a computerized assessment procedure based upon multiple regression analysis. Particularly, the predictors of market value used, which include locational and environmental factors, are all objectively quantifiable and justifiable on theoretical ground. A random sample of 245 single and double family dwelling units were drawn from records of approximately 3,000 bona fide transactions in 1970. The result reveals that the current assessment practice systematically underestimate high-value properties. Four groups of factors are postulated important in affecting the market value of a residential property. They are accessibility, site characteristics, environmental features, and building components. The structure presented here is showed feasible in computerizing the assessment of residential properties. Finally, the advantages and disadvantages of implementing the suggested framework are discussed.
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