Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois

Abstract

This study investigates the willingness of homebuyers to pay for co-location with iconic architecture. Oak Park, Illinois, was chosen as the study area given its unique claim of having 24 residential structures designed by world-famous American architect Frank Lloyd Wright, in addition to dozens of other designated landmarks and three preservation districts. This study adds to the limited body of existing literature on the external price effects of architectural design and is unique in its focus on residential architecture. We find a premium of about 8.5 per cent within 50–100 m of the nearest Wright building and about 5 per cent within 0–50 m. These results indicate that an external premium to iconic architecture does exist, although it may partially be attributable to the prominence of the architect.