![]() The quadratic appearance of the age effect has also been observed by Fahrländer ( 2006) and linked to the building material and architectural style. This behavior is a result of two main features of the age as an independent variable: (1) In general, older buildings depreciate due to deterioration (2) “however, beyond some point, only those houses with the best locations and the highest construction quality survive.” (Case et al., 2004, p. ( 2004) report a “plausible quadratic form” for the building age. It has been found that the age effect is nonlinear (Clapp & Giaccotto, 1998 Goodman & Thibodeau, 1995). The marginal effect of the building age on house prices has been well-studied. Hedonic real estate models contain several predictor variables, and age is a key explanatory variable.
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