International Journal of Management and Sustainability 2306-9856 2306-0662 International Journal of Management and Sustainability The Impact of Neighborhood Characteristics on Housing Prices-An Application of Hierarchical Linear Modeling International Journal of Management and Sustainability International Journal of Management and Sustainability 12-2012 2012 12-2012 12-2012 1 2 31 44 30 Nov 30 Nov <div style="text-align: justify;">Housing data are of a nested nature as houses are nested in a village, a town, or a county. This study thus applies HLM (hierarchical linear modelling) in an empirical study by adding neighborhood characteristic variables into the model for consideration. Using the housing data of 31 neighborhoods in the Taipei area as analysis samples and three HLM sub-models, this study discusses the impact of neighborhood characteristics on house prices. The empirical results indicate that the impact of various neighborhood characteristics on average housing prices is different and that the impact of house characteristics on house prices is also moderated by neighborhood characteristics.</div>