The purpose of this study was to shed light on how regional residential satisfaction relates to rent, which is a proxy variable for land price. The relationship between residential satisfaction and rent fundamentally informs policy analysis. This study differed from prior studies in its large number of respondents (60,000) and because the factors uncovered from factor analysis of subjective residential satisfaction were used as urban amenity variables for analyzing relationships to rent.
The research methods are described below.
1) Data from the “Ii heya netto machi no sumikokochi rankingu (Good Apartment Net Town Livability Ranking)” survey conducted by Japan Daito Trust Construction Co., Ltd., were used.
2) Factor analysis was performed on this data source, and factors were estimated for each station that was to be analyzed.
3) The factors estimated for each station to be analyzed were associated with rent-estimation model data, and multiple regression analysis was carried out with the rent logarithm as the objective variable.
From these results, we examined how regional residential satisfaction relates to rent, which is a proxy variable for land price.
The results of our research are shown below.
1) The following six factors were extracted as constituent factors of residential satisfaction: i. Administrative services factors, ii. Life convenience factors, iii. Transportation convenience and Friendliness factors, iv. Image factors, v. Quietness factors, vi. Tsunamis and Earthquakes safety factors.
2) Every station showed a large discrepancy between estimated residential satisfaction level and factor scores.
3) The following results were obtained for the relationship between residential satisfaction factors and rent. ⁃ Image factors are the most influential. ⁃ Transportation convenience and Friendliness factors and Life convenience factors are positively associated with rent. ⁃ Administrative services factors and Quietness factors are negatively associated with rent. ⁃ There is almost no relationship between Tsunamis and Earthquakes safety factors and rent. ⁃ Apart from those factors, rent drops about 1% for every one-year increase in property age, for every one-kilometer distance from Tokyo Station, and for every one-minute increase in walking distance from the closest station. Furthermore, rent for a condominium is approximately 5% higher than for an apartment, and rent in a high-rise condominium tower is approximately 10% higher than in a non-high-rise building.
The conclusions are shown below.
1) Statistically significant relationships exist between rent and the factors that make up residential satisfaction.
2) Image factors are the most influential. Transportation convenience and Friendliness factors and Life convenience factors are positively related, and Administrative services factors and Quietness factors are negatively related. There is almost no relationship between peace of mind regarding Tsunamis and Earthquakes safety factors and rent.
3) When land prices rise, property tax revenues increase, so it is important for local governments to work at improving their images as an effective way to raise rent, which is a proxy variable for land price.
Future research topics are summarized below.
1) Expand the number of stations and regions for analysis and perform analyses.
2) Carry out fieldwork in stations and regions where these factors are characteristic and perform qualitative analysis by interviewing administrative officers.