Identifying the range of distance over which open space affects housing values

Abstract

This research uses a sequence of hedonic housing price regressions to estimate open space amenity values. The iterative approach empirically identifies the range of distance over which open space affects housing values. After controlling for numerous other factors in the spatial hedonic model, simple functional relationships were established between the implicit prices of developed open space, forest-land open space, and agriculture-wetland open space and the buffer radius of the area surrounding a given location. In the case of Nashville-Davidson County, Tennessee, households place a positive value on additional developed open space and forest-land open space up to distances of 2.2 miles and 1.5 miles, respectively, and a negative value for additional agriculture-wetland open space up to 0.8-miles from their location. Implicit-price-buffer-size functional relationships found in this study may be useful to local planners or policymakers. For example, local policymakers can identify the set of homeowners who would receive positive amenity values from developed open space or from preservation of forest-land open space, given the distance thresholds determined. Estimates of amenity and disamenity values of homeowners would allow the aggregate value generated by a particular open-space site to be estimated. The aggregate value consumers receive reflects the value residents place on neighborhood open space and is an estimate of the value of open-space as a public good. Thus, decision makers can prioritize specific open-space establishment or preservation decisions by not only accounting for the costs of establishing or preserving open space, but also estimating the public value of open space.