The Economic Effect of Parks and Community-Managed Open Spaces on Residential House Prices in Baltimore, MD

Abstract

Urban greenspaces, such as parks and other public vegetated spaces, provide respite from the built environment for residents and visitors. Lesser-known urban greenspaces are community-managed open spaces (CMOSs), such as play lots, community gardens, and memorial gardens. This study investigated the effect of the distance to and size of parks and CMOSs on residential house prices in Baltimore, MD, in 2016–2017 using a hedonic price model. This is the first study of an urban city comparing parks and CMOSs. The study included 21,116 houses sold and revealed that park proximate price premiums ranged from 7.73% to 11.01% for distances of up to a 1/2 mile, and the CMOS proximate price premiums were 8.69% and 8.96% for distances of up to 1/8 and 1/4 miles, respectively. Moreover, both parks and CMOSs revealed a buyer preference of a 1/8 to 1/2 mile distance from these urban greenspaces. Small- to medium-sized parks, less than 9.65 acres, increased house prices by approximately 2.36%, and small CMOSs, less than 0.24 acres, increased house prices by 5.93%. These results confirm that parks and CMOSs provide economic benefits in addition to their social, health, and well-being benefits and suggest that CMOSs are a viable economic development strategy for communities.