Amenities in an Urban Equilibrium Model: Residential Development in Portland, Oregon

This paper estimates the effects of reduce water quality, and pollute, disturb open space and other amenities on housing prices or destroy natural habitats for wildlife. and development density in Portland, Oregon, Open space takes many forms. City within the framework of an urban equilibrium parks provide some types of recreational model. Amenities are important: households are and visual amenities. willing to pay more for newer houses located in Greenbelts and ecoareas of less dense development, with more open logical reserves typically are larger than space, better views, less traffic congestion, and city parks and ofter natural, open-space near amenity locations. For the developers, in- areas that provide a broad range of sercreases in housing prices results in providing vices. The experience of cities with ambimore large houses, which will ultimately lead to tious open space policies, such as Porthigher density and lower housing prices. A simu- land, Oregon, and Boulder, Colo rado, lation analysis evaluates policy im plications and suggests that such policies have a signifiindicates substantial benefits from alterations in cant effect on property values. Preserving housing patterns.