IDEAS home Printed from https://ideas.repec.org/a/kap/jrefec/v48y2014i2p244-255.html
   My bibliography  Save this article

The Value of Homes in Cluster Development Residential Districts: The Relative Significance of the Permanent Open Spaces Associated with Clusters

Author

Listed:
  • Paul Asabere

Abstract

This study uses the hedonic framework to look at an aspect of planning and its effects on property values. Specifically, the study examines the impacts of cluster residential development on home value using data on Lower Gwynedd Township (Pennsylvania, USA). Other factors remaining constant, the study finds that properties located within cluster developments (CLUS) attract premium prices of roughly 3.9 %, on average, relative to properties in conventional developments. However, part of the 3.9 % price premium is attributable to the permanent open spaces which are parts and parcels of clusters. When the variable for open space (OPEN) is introduced, the cluster (CLUS) premium reduces to 2.02 % suggesting the relative importance the permanent open spaces. The open space variable (OPEN) is associated with a premium of as much as 5.2 %, on average. The density of development variable (DENSITY) is significantly negative at conventional levels. The normative implication of the density finding is that raising permitted densities, per se, in a sub-urban setting where market densities are lower than permitted densities, will have adverse impacts on home value. The results of this study provide empirical support for sustainable, greener, residential cluster development. Copyright Springer Science+Business Media, LLC 2014

Suggested Citation

  • Paul Asabere, 2014. "The Value of Homes in Cluster Development Residential Districts: The Relative Significance of the Permanent Open Spaces Associated with Clusters," The Journal of Real Estate Finance and Economics, Springer, vol. 48(2), pages 244-255, February.
    • Handle: RePEc:kap:jrefec:v:48:y:2014:i:2:p:244-255
    DOI: 10.1007/s11146-012-9383-y
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11146-012-9383-y
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11146-012-9383-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mark R. Correll & Jane H. Lillydahl & Larry D. Singell, 1978. "The Effects of Greenbelts on Residential Property Values: Some Findings on the Political Economy of Open Space," Land Economics, University of Wisconsin Press, vol. 54(2), pages 207-217.
    2. Charles C. Cartern & William J. Haloupek, 2000. "Spatial Autocorrelation in a Retail Context," International Real Estate Review, Global Social Science Institute, vol. 3(1), pages 34-48.
    3. Basu, Sabyasachi & Thibodeau, Thomas G, 1998. "Analysis of Spatial Autocorrelation in House Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 61-85, July.
    4. Katz, Lawrence & Rosen, Kenneth T, 1987. "The Interjurisdictional Effects of Growth Controls on Housing Prices," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 149-160, April.
    5. Elena G. Irwin, 2002. "The Effects of Open Space on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 78(4), pages 465-480.
    6. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    7. Courant, Paul N., 1976. "On the effect of fiscal zoning on land and housing values," Journal of Urban Economics, Elsevier, vol. 3(1), pages 88-94, January.
    8. Smith, V. Kerry & Poulos, Christine & Kim, Hyun, 2002. "Treating open space as an urban amenity," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 107-129, February.
    9. Paul Asabere & Forrest Huffman, 2009. "The Relative Impacts of Trails and Greenbelts on Home Price," The Journal of Real Estate Finance and Economics, Springer, vol. 38(4), pages 408-419, May.
    10. Dietrich Earnhart, 2006. "Using Contingent-Pricing Analysis to Value Open Space and Its Duration at Residential Locations," Land Economics, University of Wisconsin Press, vol. 82(1), pages 17-35.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernandez, Linda & Cutter, Bowman & Sharma, Ritu & Scott, Tom, 2018. "Land preservation policy effect or neighborhood dynamics: A repeat sales hedonic matching approach," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 311-326.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Asabere & Forrest Huffman, 2009. "The Relative Impacts of Trails and Greenbelts on Home Price," The Journal of Real Estate Finance and Economics, Springer, vol. 38(4), pages 408-419, May.
    2. Fabian Waltert & Felix Schlaepfer, 2007. "The role of landscape amenities in regional development: a survey of migration, regional economic and hedonic pricing studies," SOI - Working Papers 0710, Socioeconomic Institute - University of Zurich.
    3. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    4. Robert Kling & T. Findley & Emin Gahramanov & David Theobald, 2015. "Hedonic valuation of land protection methods: implications for cluster development," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(4), pages 782-806, October.
    5. Neil Metz, 2017. "Value for Open Space: Protection and Access Level," Growth and Change, Wiley Blackwell, vol. 48(1), pages 127-152, March.
    6. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    7. Abbott, Joshua K. & Klaiber, H. Allen, 2010. "Is all space created equal? Uncovering the relationship between competing land uses in subdivisions," Ecological Economics, Elsevier, vol. 70(2), pages 296-307, December.
    8. Caruso, Geoffrey & Peeters, Dominique & Cavailhes, Jean & Rounsevell, Mark, 2007. "Spatial configurations in a periurban city. A cellular automata-based microeconomic model," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 542-567, September.
    9. Sanglim Yoo & John E. Wagner, 2016. "A review of the hedonic literatures in environmental amenities from open space: a traditional econometric vs. spatial econometric model," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 20(1), pages 141-166, March.
    10. Beal-Hodges, Mary, 2012. "Conservation land acquisition lists and nearby property values: evidence from the Florida Forever programme," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 114(1), pages 1-8.
    11. Liu, Sezhu & Hite, Diane, 2013. "Measuring the Effect of Green Space on Property Value: An Application of the Hedonic Spatial Quantile Regression," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143045, Southern Agricultural Economics Association.
    12. Monique DANTAS & Frédéric GASCHET & Guillaume POUYANNE, 2010. "Regulatory zoning and coastal housing prices: a bayesian hedonic approach (In French)," Cahiers du GREThA (2007-2019) 2010-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    13. Guillaume POUYANNE & Frederic GASCHET, 2013. "The Effect Of Current And Future Land Use On House Prices," ERSA conference papers ersa13p249, European Regional Science Association.
    14. Carolyn A. Dehring & Craig A. Depken & Michael R. Ward, 2007. "The Impact Of Stadium Announcements On Residential Property Values: Evidence From A Natural Experiment In Dallas‐Fort Worth," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 627-638, October.
    15. Seong-Hoon Cho & Dayton Lambert & Seung Kim & Roland Roberts & William Park, 2011. "Relationship between value of open space and distance from housing locations within a community," Journal of Geographical Systems, Springer, vol. 13(4), pages 393-414, December.
    16. Xia Feng & Brad R. Humphreys, 2008. "Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach," Working Papers 0812, International Association of Sports Economists;North American Association of Sports Economists.
    17. Lu Liu & Paul M. Jakus, 2015. "Hedonic Valuation in an Urban High-Rise Housing Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 259-273, June.
    18. Seth B. Payton & John R. Ottensmann, 2015. "The implicit price of urban public parks and greenways: a spatial-contextual approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 58(3), pages 495-512, March.
    19. Livy, Mitchell R. & Klaiber, H. Allen, 2013. "Maintaining Public Goods: Household Valuation of New and Renovated Local Parks," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150634, Agricultural and Applied Economics Association.
    20. Poudyal, Neelam C. & Hodges, Donald G. & Tonn, Bruce & Cho, Seong-Hoon, 2009. "Valuing diversity and spatial pattern of open space plots in urban neighborhoods," Forest Policy and Economics, Elsevier, vol. 11(3), pages 194-201, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jrefec:v:48:y:2014:i:2:p:244-255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.