The return of centralization to Chicago: Using repeat sales to identify changes in house price distance gradients

Distance gradients for the unit price of housing can only be estimated accurately from a simple hedonic house value function if data are available on all housing characteristics. A simple extension of the repeat sales estimator makes it possible to identify changes in the distance gradient over time. The estimates suggest a dramatic return of centralization to the Chicago housing market. After a long period during which house prices were not affected by distance from the central business district, values now decline by more than 8% per mile.