Influence of crime on housing rents in Medellin between 2009 and 2021
Abstract
The influence of crimes against people's life and health and their assets on real estate rentals has been little studied in Colombia, as a result of the scarcity of information on the real estate sector and the lack of interest of researchers. For this reason, this analysis attempts to establish in percentage terms the incidence of crime on housing rents in Medellín and to show its negative influence, not only in terms of social welfare but also in monetary terms for property owners. The methodology used was geographically weighted regression (GWR), which allows for obtaining better results than traditional methodologies, in addition to the fact that it allows the generation of coefficient surfaces, which is not the case with the traditional econometric methodology. The information used in the study was obtained from the Lonja de Propiedad Raíz de Medellín y Antioquia, while the data corresponding to crimes committed in the city was downloaded from the web page datosabiertos.gov.co. The most important finding resulting from this analysis is related to the fact that the crimes mentioned deteriorate notoriously the rental market in the city, by contracting the rents that future tenants are willing to pay.
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References
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