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The Impact of Brownfields on Residential Property Values in Cincinnati, Ohio: A Spatial Hedonic Approach

Author

Listed:
  • Mihaescu, Oana

    (HUI Research)

  • vom Hofe, Rainer

    (University of Cincinnati)

Abstract

This paper empirically assesses the impact brownfield sites have on market values of single-family residential properties. Using three different hedonic model specifications, namely Ordinary Least Squares, Spatial Autoregressive, and Spatial Error Model, this study shows that properties located less than 1,000 feet from a brownfield site experience a significant depreciation in property values. As expected, spatial dependence among real estate property values is present meaning that the two spatial hedonic model specifications are superior to the Ordinary Least Squares specification. The study contributes to the relevant real estate and urban economics literature by determining the negative impact brownfield sites have on the value of single-family residential properties in our study region in Cincinnati, by explicitly accounting for the phenomenon of spatial dependence in the dependent variable, and by addressing the declining influence of brownfield sites on property values in a nonlinear relationship.

Suggested Citation

  • Mihaescu, Oana & vom Hofe, Rainer, 2013. "The Impact of Brownfields on Residential Property Values in Cincinnati, Ohio: A Spatial Hedonic Approach," HUI Working Papers 85, HUI Research.
    • Handle: RePEc:hhs:huiwps:0085
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    References listed on IDEAS

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    Cited by:

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    3. Peter M. Schwarz & Gwendolyn L. Gill & Alex Hanning & Caleb A. Cox, 2017. "Estimating The Effects Of Brownfields And Brownfield Remediation On Property Values In A New South City," Contemporary Economic Policy, Western Economic Association International, vol. 35(1), pages 143-164, January.
    4. Mitsuru Sasaki & Kayoko Yamamoto, 2018. "Hedonic Price Function for Residential Area Focusing on the Reasons for Residential Preferences in Japanese Metropolitan Areas," JRFM, MDPI, vol. 11(3), pages 1-18, July.
    5. Daunfeldt, Sven-Olov & Mihaescu, Oana & Öner, Özge & Rudholm, Niklas, 2019. "Retail and place attractiveness: The effects of big-box entry on property values," HFI Working Papers 1, Institute of Retail Economics (Handelns Forskningsinstitut).
    6. vom Hofe, Rainer & Mihaescu, Oana & Boorn, Mary Lynne, 2017. "Do urban parks really benefit homeowners economically? Evidence from a spatial hedonic study of the Cincinnati park system," HUI Working Papers 122, HUI Research.
    7. Angjellari-Dajci, Fiorentina & Boylan, Robert & Cebula, Richard, 2014. "Firm Size, Dual Brokerage, and National Franchise Affiliation of Real Estate Brokerage Firms: Unexpected Results from 2008 to 2013," MPRA Paper 55897, University Library of Munich, Germany.

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    More about this item

    Keywords

    brownfield site; property values; hedonic regression; spatial modelling;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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