Coastal property markets are influenced by unique environmental attributes, yet
traditional models often assume their economic value is spatially constant. This study
investigates the spatial heterogeneity of beach proximity value in Glynn County, Georgia,
using a geographically weighted spatial lag (GWSL) hedonic model. By analyzing
42,152 residential transactions from 1984 to 2021, we find that the effect of beach
proximity on house prices is highly non-stationary, with significant capitalization concentrated
in barrier islands. Our results reveal a powerful spatial multiplier, which
indicates that property wealth is highly socialized through localized price spillovers.
Applying individual local parameters, we estimate a mean Total Marginal Willingness
to Pay (MWTP) of $1.06 million for a 100-meter reduction in network distance to the
shoreline.
