Maintaining Public Goods: The Capitalized Value of Local Park Renovations

Livy, Mitchell R.; Klaiber, H. Allen

doi:10.3368/le.92.1.96

Cited by 19 publications

(8 citation statements)

References 23 publications

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“…But our results fail to support this relationship, a finding similar to those reported by Jarrad et al (2018) and Netusil et al (2014)-two other GI-related studies. This result is also consistent with Livy and Klaiber (2016), who found considerable heterogeneity in how local park renovations are capitalized into nearby property values, with some types of renovations having no statistically significant effect on values.…”

Section: Discussionsupporting

confidence: 90%

Examining the effects of green infrastructure on residential sales prices in Omaha, Nebraska

Hoover

Price

Hopton

2020

Urban Forestry & Urban Greening

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Green infrastructure (GI), practices consisting of using vegetation and soil to manage stormwater runoff (e.g., rain gardens, vegetated roofs, bioswales, etc.), has been adopted by cities across the world to help address aging water infrastructure, water quality, excess water quantity, and urban planning needs. Although GI's contribution to stormwater control and management has been extensively studied, the economic value of its benefits is less known. In Omaha, NE, GI projects have been completed in several public parks. Using a repeat-sales model based on 2000-2018 housing data, we examined the effect of GI on the value of single-family homes within various buffer distances of parks where GI was installed. After controlling for changes associated with home deterioration and renovation, non-stationary location effects, and time-invariant characteristics, we did not find any statistically significant relationships between housing values and GI. This finding is consistent with the notion that homeowners place little value on modifications to existing greenspace, but may also stem from homeowners' lack of familiarity with GI practices or data limitations.

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Section: Discussionsupporting

confidence: 90%

Examining the effects of green infrastructure on residential sales prices in Omaha, Nebraska

Hoover

Price

Hopton

2020

Urban Forestry & Urban Greening

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“…Carlino and Saiz (2019) look separately at capital and operating expenditures on recreational areas, but its outcome variable is the number of visits, not housing prices. Livy and Klaiber (2016) look at major renovations of existing recreational facilities. This study is probably the most closely related to ours, although the capital renovations it studies are the opposite of the decreased maintenance that we study.…”

Section: Maintenance Spending On Parks As Key Factormentioning

confidence: 99%

The effect of open space maintenance spending on house prices

Brasington

2023

Journal of Regional Science

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We study the effect on housing values of cutting funding for the maintenance of local parks and recreational areas. It is the first study we find on house prices and park maintenance spending, and only the second open space study we find that uses regression discontinuity. We study tax votes with exogenous timing for renewing current expense spending on parks and recreation, adding to the vibrant literature on house price capitalization of environmental amenities. We find that otherwise similar communities that barely vote to cut taxes suffer an 11% drop in house prices, compared to communities that barely vote to renew tax funding. The capitalization discount grows to 13% and 16% in later periods. Voting against spending saves $70 a year for a typical house but cuts house values by over $30,000. We find stronger effects for large tax levies and more expensive houses.

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“…Policy makers who wish to revitalize neighborhoods do include social cost considerations and sometimes provide public finance in funding alterations to access and parking, or to public space to let a property owner redevelop their property (Ahlfeldt, Maennig, & Richter, 2016). A broad set of literature finds evidence for positive external effects from such place-based investments, such as brownfields (Kiel & Zabel, 2001), cultural heritage (Been, Ellen, Gedal, Glaeser, & McCabe, 2016;Koster & Rouwendal, 2017), industrial heritage (Van Duijn, Rouwendal, & Boersema, 2016), local parks (Livy & Klaiber, 2016), and subsidized housing (Koster & Van Ommeren, 2019;Schwartz, Ellen, Voicu, & Schill, 2006). These empirical studies suggest that property prices tend to be anywhere between 0% and 17% higher in neighborhoods after these investments.…”

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confidence: 99%

The external effects of inner‐city shopping centers: Evidence from the Netherlands

Song

Duijn

Vlist

2019

Journal of Regional Science

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Shopping center redevelopment is inevitable to remain attractive for consumers. In this paper, we investigate the external effects of shopping center redevelopment on nearby residential property prices. Using a difference‐in‐difference empirical framework, we find the redevelopment has positive external effects on nearby property prices. We find the price of a property located next to a redeveloped shopping center increases by 1.43% on average just after redevelopment. Our results indicate that these positive external effects wear off rather rapidly across space and over time. This suggests that shopping center redevelopment plays a substantial, but limited, role in combating neighborhood deprivation.

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Maintaining Public Goods: The Capitalized Value of Local Park Renovations

Cited by 19 publications

References 23 publications

Examining the effects of green infrastructure on residential sales prices in Omaha, Nebraska

Examining the effects of green infrastructure on residential sales prices in Omaha, Nebraska

The effect of open space maintenance spending on house prices

The external effects of inner‐city shopping centers: Evidence from the Netherlands

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