The purpose of this study is to clarify effects of local environmental and individual factors onhouse prices in Seoul, and analyze their impacts and interaction effects among classes.
Effects on house prices differ due to individual houses’ characteristics and local features, andeffects of mediating factors on house prices differ due to traffic and comfort environments evenwith the same individual and local features. Thus, we can systematically understand thecomplicated phenomena influencing house prices by analyzing impacts on house prices in a nestedstructure including local and individual dimensions. An appropriate method of analysis for this studyis the Hierarchical Linear Model (HLM). As a result of the analysis using the model, we have foundout that the impact of local environments on house prices get increasingly higher currently than inthe past. Also, this study has clarified various local level and individual level variables influencingon house prices and at the same time analyzed phenomena differently influencing house prices indifferent areas though with the same individual variables. And, it has clarified interaction effectsamong groups with which one can judge rising or offsetting effects on house prices. This study issignificant in that it has clarified various phenomena influencing the structure of house priceformation.