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Abstract:

cover
SERC/Urban and Spatial Programme Discussion Paper
Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois
Gabriel M. Ahfeldt and Alexandra Mastro
July 2011
Paper No' SERCDP0084:
Full Paper (pdf)

JEL Classification: R21; Z11


Tags: frank lloyd wright; hedonic analysis; iconic architecture; property prices

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. The results show that an external premium to iconic architecture does exist and that the effect steeply decays with distance.