The Impact of Mixed Land Use on Residential Property Values*

Abstract

SummaryContemporary European urban planning policies aim to mix land uses in compact neighbourhoods. It is presumed that mixing land uses yields socio-economic benefits and therefore has a positive effect on housing values. In this paper, we investigate the impact of mixed land use on housing values using semiparametric estimation techniques. We demonstrate that a diverse neighbourhood is positively valued by households. There are various land use types which positively affect house prices, e.g. business services and leisure. Land uses that are incompatible with residential land use are, among others, manufacturing and wholesale. It appears that households are willing to pay up to 6 percent more for a house in a mixed neighbourhood than for an otherwise comparable house in a monofunctional area. We also show that there is substantial heterogeneity in willingness to pay for mixed land use. For example, apartment occupiers are willing to pay almost 25 percent more for diversity than households living in detached housing.Keywords: Mixed land use; diversity; hedonic price analysis; semiparametric estimation; AcknowledgementsWe would like to thank the NVM and Statistics Netherlands for providing data. The paper has benefited from a NICIS-KEI research grant. We are indebted to Piet Rietveld, Wouter Jacobs and Wendy Tan for valuable comments.

Measuring the Externality Effects of Commercial Land Use on Residential Land Value: A Case Study of Seoul

“…The intensity of nonresidential use has been evaluated by examining both relative proportions of non-residential land use area and sheer numbers of employees in different industries [10,13,14]. The advantage of these measurements is that they take into account the density of non-residential use in a neighborhood.…”

Impacto de la fragmentación espacial sobre el valor de los inmuebles de uso residencial utilizando la metodología de precios hedónicos, caso de estudio: Mosquera, Cundinamarca

“…[12]. El modelo de Rezago Espacial toma la forma: (4) Siendo un parámetro desconocido de caracterís-ticas espaciales, el signo de este parámetro indica la naturaleza de la dependencia espacial (positiva o negativa), sugiriendo así la existencia de la misma en los valores observados del mercado. El término del rezago espacial , es endógeno, así los MCO pueden conducir a una estimación parcial de los coeficientes; sin embargo, no es necesario limitarse a este método, puesto que existen alternativas como la máxima verosimilitud y mínimos cuadrados en dos etapas [18].…”

“…Redes 4 para obtener las variables área y perí-metro; y así adquirir la razón entre el perímetro y el radio del área (medida de la fragmentación espacial). Este radio indica si la fragmentación es pequeña o se extiende y fue previamente usado por Geoghegan, Wainger y Bockstael [7].…”

“…Koster y Rouwendal [4] presentan el análisis de la influencia que tiene la pluralidad de los usos de la tierra en los valores inmobiliarios residenciales ubicados en Rotterdam (Holanda), este menciona la existencia de tipos de uso del suelo que afectan positivamente los precios de la vivienda.…”

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“…While the city centre or Central Business District is the traditional example of concentrations of such multi-use space (Anas et al, 1998, Sassen, 2001, in reality, with increased population and employment decentralization, as is the case with polycentric cities worldwide, these are likely to be scattered throughout the city (Taubenböck, et al, 2013). In addition, mixed land-use has been a primary goal for Smart Growth, Compact City and New Urbanism planning policies, and areas which are largely residential have been noted to exhibit social uses (Koster and Rouwendal, 2010). Hence there is increased likelihood of functional and social activities occurring in residential areas.…”