IDEAS home Printed from https://ideas.repec.org/p/hhs/huiwps/0122.html
   My bibliography  Save this paper

Do urban parks really benefit homeowners economically? Evidence from a spatial hedonic study of the Cincinnati park system

Author

Listed:
  • vom Hofe, Rainer

    () (School of Planning)

  • Mihaescu, Oana

    (HUI Research)

  • Boorn, Mary Lynne

    (School of Planning)

Abstract

This paper examines the impacts of the City of Cincinnati urban park system on residential property values in a spatial hedonic model. Using housing data in combination with data on 182 parks and over 37,000 single-family residential properties, we examine how the distance to parks, the size of the nearest park, and the presence of park facilities for recreational activities, affect property values. Due to the presence of spatial dependence in our data, we chose two spatial hedonic model specifications that account for local spillovers: the spatial Durbin error model (SDEM) model, and the spatial lag of X model (SLX). By comparing the results from the two models, we show that decreasing the distance to a park by one meter results in an appreciation of the value of the average house in our sample by $7.05 to $9.83. A one hectare increase in the park size house values by $27.73 to $28.03 and the presence of park facilities for recreational activities depreciates house values by an estimated $2,267 for properties within a 500 meter radius to the nearest park. In a last step, we evaluate the park effects on house values when changing the size of the used buffer zones and conclude that the estimated park effects vary significantly with the selected buffers.

Suggested Citation

  • 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.
  • Handle: RePEc:hhs:huiwps:0122
    as

    Download full text from publisher

    File URL: http://www.hui.se/BinaryLoader.axd?OwnerID=3a577059-d869-4d1b-bff1-5673eefc3461&OwnerType=0&PropertyName=EmbeddedFile_ce3b6c94-428b-499a-9a91-a79a13b6abaf&FileName=VomHofeEtAl_CincinnatiParks.docx.pdf&Attachment=True
    Download Restriction: no

    References listed on IDEAS

    as
    1. Heather A Sander & Debarchana Ghosh & David van Riper & Steven M Manson, 2010. "How Do You Measure Distance in Spatial Models? An Example Using Open-Space Valuation," Environment and Planning B, , vol. 37(5), pages 874-894, October.
    2. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
    3. David Brasington & Donald R. Haurin, 2006. "Educational Outcomes and House Values: A Test of the value added Approach," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 245-268.
    4. Shultz, Steven D & King, David A, 2001. "The Use of Census Data for Hedonic Price Estimates of Open-Space Amenities and Land Use," The Journal of Real Estate Finance and Economics, Springer, vol. 22(2-3), pages 239-252, March-May.
    5. Masha Maslianskaia-Pautrel & Catherine Baumont pba148, 2016. "The nature and impacts of environmental spillovers on housing prices: A spatial hedonic analysis," Working Papers 2016.04, FAERE - French Association of Environmental and Resource Economists.
    6. Margot Lutzenhiser & Noelwah R. Netusil, 2001. "The Effect Of Open Spaces On A Home'S Sale Price," Contemporary Economic Policy, Western Economic Association International, vol. 19(3), pages 291-298, July.
    7. Masha Maslianskaïa-Pautrel & Catherine Baumont, 2016. "Environmental Spillovers and their Impacts on Housing Prices: A Spatial Hedonic Analysis," Revue d'économie politique, Dalloz, vol. 126(5), pages 921-945.
    8. Ioan Voicu & Vicki Been, 2008. "The Effect of Community Gardens on Neighboring Property Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 36(2), pages 241-283, June.
    9. Allen Lynch & David Rasmussen, 2001. "Measuring the impact of crime on house prices," Applied Economics, Taylor & Francis Journals, vol. 33(15), pages 1981-1989.
    10. Sander, Heather & Polasky, Stephen & Haight, Robert G., 2010. "The value of urban tree cover: A hedonic property price model in Ramsey and Dakota Counties, Minnesota, USA," Ecological Economics, Elsevier, vol. 69(8), pages 1646-1656, June.
    11. Daniel Baldwin Hess & Tangerine Maria Almeida, 2007. "Impact of Proximity to Light Rail Rapid Transit on Station-area Property Values in Buffalo, New York," Urban Studies, Urban Studies Journal Limited, vol. 44(5-6), pages 1041-1068, May.
    12. repec:cup:jagaec:v:33:y:2001:i:03:p:487-492_02 is not listed on IDEAS
    13. Dennis Kaufman & Norman Cloutier, 2006. "The Impact of Small Brownfields and Greenspaces on Residential Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 33(1), pages 19-30, August.
    14. repec:wsi:jeapmx:v:15:y:2013:i:01:n:s1464333213500087 is not listed on IDEAS
    15. James P. LeSage, 2014. "What Regional Scientists Need to Know about Spatial Econometrics," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 13-32, Spring.
    16. Okmyung Bin & Thomas W. Crawford & Jamie B. Kruse & Craig E. Landry, 2008. "Viewscapes and Flood Hazard: Coastal Housing Market Response to Amenities and Risk," Land Economics, University of Wisconsin Press, vol. 84(3), pages 434-448.
    17. Doss, Cheryl R. & Taff, Steven J., 1996. "The Influence Of Wetland Type And Wetland Proximity On Residential Property Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), July.
    18. Clapp, John M. & Nanda, Anupam & Ross, Stephen L., 2008. "Which school attributes matter? The influence of school district performance and demographic composition on property values," Journal of Urban Economics, Elsevier, vol. 63(2), pages 451-466, March.
    19. James P. Lesage, 2008. "An Introduction to Spatial Econometrics," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 19-44.
    20. Craig E. Landry & Paul Hindsley, 2011. "Valuing Beach Quality with Hedonic Property Models," Land Economics, University of Wisconsin Press, vol. 87(1), pages 92-108.
    21. M du Preez and MC Sale, 2014. "Municipal assessments versus actual sales price information in hedonic price studies: A South African case study," Working Papers 411, Economic Research Southern Africa.
    22. Cebula, Richard J., 2009. "The Hedonic Pricing Model Applied to the Housing Market of the City of Savannah and Its Savannah Historic Landmark District," The Review of Regional Studies, Southern Regional Science Association, vol. 39(1), pages 9-22.
    23. 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.
    24. 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..
    25. Germán M. Izãn & Michael S. Hand & Matias Fontenla & Robert P. Berrens, 2010. "The Economic Value Of Protecting Inventoried Roadless Areas: A Spatial Hedonic Price Study In New Mexico," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 537-553, October.
    26. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    27. Elena G. Irwin & Nancy E. Bockstael, 2001. "The Problem of Identifying Land Use Spillovers: Measuring the Effects of Open Space on Residential Property Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 698-704.
    28. Mihaescu, Oana & vom Hofe, Rainer, 2013. "Using Spatial Regression to Estimate Property Tax Discounts from Proximity to Brownfields: A Tool for Local Policy-Making," HUI Working Papers 86, HUI Research.
    29. Bo Söderberg & Christian Janssen, 2001. "Estimating Distance Gradients for Apartment Properties," Urban Studies, Urban Studies Journal Limited, vol. 38(1), pages 61-79, January.
    30. James P. Lesage & Christina L. Ha, 2012. "The Impact of Migration on Social Capital: Do Migrants Take Their Bowling Balls with Them?," Growth and Change, Wiley Blackwell, vol. 43(1), pages 1-26, March.
    31. Tyrvainen, Liisa & Miettinen, Antti, 2000. "Property Prices and Urban Forest Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 205-223, March.
    32. Espey, Molly & Owusu-Edusei, Kwame, 2001. "Neighborhood Parks and Residential Property Values in Greenville, South Carolina," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(03), pages 487-492, December.
    33. Heather A Sander & Debarchana Ghosh & David van Riper & Steven M Manson, 2010. "How do you measure distance in spatial models? An example using open-space valuation," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 37(5), pages 874-894, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Hedonic Analysis; Property Value; Cincinnati Urban Parks System; Green Space; Cincinnati Ecosystem Study;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    Statistics

    Access and download statistics

    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:hhs:huiwps:0122. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Nilsson). General contact details of provider: http://edirc.repec.org/data/huistse.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.