A hedonic model was developed to analyze the market for undeveloped forest land in Minnesota. Variables describing in situ conditions, locational characteristics, buyer perceptions and intentions, and transactional terms were tested for their influence on sale price. The independent variables explained 67% of the per hectare sale price variation. Water frontage, road access and density, absentee ownership, future intentions, and financing arrangements had large, positive influences on price. Lack of a real-estate agent and agricultural land in the vicinity of the parcel had negative influences. A parcel's merchantable timber volume was not a significant predictor of price.
Bibliographical noteFunding Information:
This research was supported by the USDA Forest Service, Northern Research Station. We are grateful to Donald Dennis and Lawrence Teeter for providing helpful comments on an earlier version of this manuscript, and to John Stanovick for providing statistical guidance.
Copyright 2015 Elsevier B.V., All rights reserved.
- Forest finance
- Forest land prices
- Forest markets
- Hedonic analysis
- Price function