Analysis of the Performance and Mechanism of the Impact of Urban Renewal on Housing Prices

Abstract

Background: This study analyzes the impact of urban renewal on housing prices in the Beitou District, Taipei, Taiwan, focusing on localized and spatial spillover effects. Urban renewal in Beitou has been a transformational process aimed at revitalizing decayed infrastructures and improving disaster resiliency amidst urban growth challenges. The study aims to capture local factors such as building characteristics, floor size, and access to amenities that affect housing prices, as well as spillover effects from adjacent areas. Methods: Using the Spatial Lag of X (SLX) model and Ordinary Least Squares (OLS) estimation, the study examines the direct and spillover effects of urban renewal on property values. Results: Urban renewal increased property values in redevelopment zones due to improvements in infrastructure, transport access, and public amenities. The analysis also provides evidence of strong spillovers, where increased housing demand in renewed areas raised property values in neighboring areas. However, urban renewal also exacerbated housing affordability issues and socio-economic dislocation, particularly among low-income groups. Conclusion: The study identifies critical policy gaps, particularly the absence of affordable housing provisions, and recommends strategies such as introducing affordable housing requirements, encouraging mixed-income developments, and promoting community participation in planning. Additionally, it highlights the utility of spatial econometric models like SLX for analyzing urban renewal impacts and offers actionable insights for sustainable and inclusive urban development.