Spatial econometrics, land values and sustainability: Trends in real estate valuation research

► We examine recent trends in the property valuation literature. ► Spatial econometrics is fast becoming the standard for hedonic price models. ► There is renewed interest in land values and land value trends. ► Estimating value premiums for sustainable forms of development as a popular new research topic. In the aftermath of the recent boom and bust of US real estate, both a refinement and a deeper understanding of real estate valuation methods have become critical concerns across a number of broad urban-related academic fields. Out of this we see three major trends in the field of real estate valuation research: (1) the expansion of spatial econometrics; (2) the recognition of the differences between land values and improvement values; and (3) acknowledgment of value premiums stemming from more sustainable forms of development. This paper offers a brief summary of the latest work in these emerging areas of academic valuation research.