Influence of Public Conservation Acquisition on Surrounding Residential Property Values in Gainesville, Florida
Publication: Journal of Urban Planning and Development
Volume 143, Issue 3
Abstract
This study uses a hedonic price model to examine the relationship between proximity to newly purchased conservation lands and single-family property values. Specifically, a variant of the hedonic price model is used that addresses changing market values of neighborhood and locational attributes during a given period. Fixed effects are included to control spatial autocorrelation and year and month influences under three variants of an ordinary least-squares (OLS) model, which are double-log, semi-log, and linear model. In addition to the traditional OLS model to explain residential values, a geographically weighted regression (GWR) model is used to study the local difference of coefficient values for each primary variable. An empirical study using a single-family house market-price data set from 2002 to 2010 and 104 newly purchased conservation lands in Alachua County, Florida, is also conducted. To account for the impact of the housing market crash around 2006, the researchers break the data set into two groups (precrash and postcrash), and compare them. The results indicate that sales price increases 0.04% for every percent decrease in distance to the nearest conservation land in general, while the positive influences from conservation lands are larger precrash compared to those afterward. In addition, time from acquisition is not significant precrash; however, it has a negative influence on property values after the housing market crash in 2006. The result is that the purchase of environmentally sensitive lands has an immediate and positive influence on neighboring property values. The influence, however, decreases as time from purchase increases. The results of this study support the government policy of protecting environmentally sensitive lands through their purchase. In addition, coefficient surfaces generated from GWR models can also be used as a guideline for making these purchases in terms of location.
Get full access to this article
View all available purchase options and get full access to this article.
References
ArcGIS 10.1 [Computer software]. ESRI, Redlands, CA.
Acharya, G., and Bennett, L. L. (2001). “Valuing open space and land-use patterns in urban watersheds.” J. Real Estate Finance Econ., 22(2), 221–237.
Alachua County EPD (Environmental Protection Dept.). (2014). “Florida and the trust for public land: Open space proximity and land values.” Alachua, FL.
Alachua County Property Appraiser. (2014). “Alachua County tax roll data.” ⟨http://www.acpafl.org/alachuacountytaxrolldata.html⟩ (Feb. 12, 2017).
Anderson, S. T., and West, S. E. (2006). “Open space, residential property values, and spatial context.” Reg. Sci. Urban Econ., 36(6), 773–789.
Arafat, A. A. A. (2011). “Evaluating accessibility and travel cost as suitability components in the allocation of land use a case study of identifying land for affordable housing in three counties in Florida.” Ph.D. thesis, Univ. of Florida, Gainesville, FL.
Asabere, P. K. (2014). “Value of homes in cluster development residential districts: The relative significance of the permanent open spaces associated with clusters.” J. Real Estate Finance Econ., 48(2), 244–255.
Balsdon, E. M. (2012). “Property value capitalization and municipal open space referenda.” Land Econ., 88(2), 201–232.
Cranz, G. (1982). The politics of park design: A history of urban parks in America, MIT Press, Cambridge, MA.
Crompton, J. L., and American, P. A. (2001). Parks and economic development, American Planning Association, Chicago.
Dunse, N., White, M., and Dehring, C. (2007). “Urban parks, open space and residential property values.” RICS Res. Pap. Ser., 7(8), 40.
Fotheringham, A. S., Brunsdon, C., Charlton, M., and NetLibrary, I. (2002). Geographically weighted regression the analysis of spatially varying relationships, Wiley, Hoboken, NJ.
Garvin, A., and Brands, R. M. (2011). Public parks: The key to livable communities, 1st Ed., W.W. Norton and Co., New York.
Geoghegan, J. (2002). “The value of open spaces in residential land use.” Land Use Policy, 19(1), 91–98.
Geoghegan, J., Lynch, L., and Bucholtz, S. (2003). “Capitalization of open spaces into housing values and the residential property tax revenue impacts of agricultural easement programs.” Agric. Resour. Econ. Rev., 32(1), 33–45.
Geoghegan, J., Wainger, L. A., and Bockstael, N. E. (1997). “Spatial landscape indices in a hedonic framework: An ecological economics analysis using GIS.” Ecol. Econ., 23(3), 251–264.
Goodman, A. C. (1977). “A comparison of block group and census tract data in a hedonic housing price model” Land Econ., 53(4), 483–487.
Greenstone, M., and Gayer, T. (2009). “Quasi-experimental and experimental approaches to environmental economics.” J. Environ. Econ. Manage., 57(1), 21–44.
Irwin, E. G., and Bockstael, N. E. (2001). “The problem of identifying land use spillovers: Measuring the effects of open space on residential property values.” Am. J. Agric. Econ., 83(3), 698–704.
Kim, Y. S., and Wells, A. (2005). “The impact of forest density on property values.” J. For., 103(3), 146–151.
Koster, H. R. A., and Rouwendal, J. (2012). “The impact of mixed land use on residential property values.” J. Reg. Sci., 52(5), 733–761.
Lancaster, K. J. (1966). “A new approach to consumer theory.” J. Political Econ., 74(2), 132–157.
Ling, D. C., and Archer, W. R. (2008). Real estate principles: A value approach, 2nd Ed., McGraw-Hill, Boston.
Luttik, J. (2000). “The value of trees, water and open space as reflected by house prices in the Netherlands.” Landscape Urban Plann., 48(3–4), 161–167.
McCormack, G. R., Rock, M., Toohey, A. M., and Hignell, D. (2010). “Characteristics of urban parks associated with park use and physical activity: A review of qualitative research.” Health Place, 16(4), 712–726.
More, T. A., Stevens, T., and Allen, P. G. (1988). “Valuation of urban parks.” Landscape Urban Plann., 15(1–2), 139–152.
Nicholls, S., and Crompton, J. L. (2005). “The impact of greenways on property values: Evidence from Austin, Texas.” J. Leisure Res., 37(3), 321–341.
Parsons, J. (2017). “Real estate charts.” ⟨http://housingbubble.jparsons.net⟩ (Feb. 11, 2017).
Shaikh, S. L. (2011). “Economic impact of urban green space investments: A case study for Chicago.” Program on Global Environment and Public Policy Studies, Univ. of Chicago, Chicago, 3–17.
Shultz, S. D., and King, D. A. (2001). “The use of census data for hedonic price estimates of open-space amenities and land use” J. Real Estate Finance Econ., 22(2–3), 239–252.
Sundberg, J. (2014). “Preferential assessment for open space.” Public Finance Manage., 14(2), 165–193.
TPL Landvote Database. (2014). “Trust for public land.” ⟨http://www.landvote.org⟩ (Feb. 16, 2014).
University of Florida GeoPlan Center. (2010). “Florida parcel data by County-2010, Florida geographic data library.” ⟨http://www.fgdl.org/metadataexplorer/explorer.jsp⟩.
U.S. Census Bureau. (2010). “ACS demographic and housing estimates, 2008–2012 American Community Survey 5-year estimates.” ⟨http://factfinder2.census.gov/faces/tableservices/jsf⟩.
Voicu, I., and Been, V. (2008). “The effect of community gardens on neighboring property values.” Real Estate Econ., 36(2), 241–283.
Waits, J. (2008). “Urban green space: Is it the next financial frontier?” Bus. Perspect., 19(3), 36–40.
Wang, R. (2011). “Measuring urban form and examining its impact on traffic congestion in Florida.” Master thesis, Univ. of Florida, Gainesville, FL.
Woolley, H. (2003). Urban open spaces, Spon Press, New York.
Zhang, B., Xie, G., Xia, B., and Zhang, C. (2012). “The effects of public green spaces on residential property value in Beijing.” J. Resour. Ecol., 3(3), 243–252.
Information & Authors
Information
Published In
Journal of Urban Planning and Development
Volume 143 • Issue 3 • September 2017
Copyright
©2017 American Society of Civil Engineers.
History
Received: Jul 24, 2016
Accepted: Jan 4, 2017
Published online: Mar 20, 2017
Discussion open until: Aug 20, 2017
Published in print: Sep 1, 2017
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.