The effect of open spaces on a home's sale price

Abstract

The relationship between a home's sale price and its proximity to different open spaces types is explored using a data set comprised of single-family home sales in the city of Portland, within Multnomah County, between 1990 and 1992. Homes located within 1,500 feet of a natural area park, where more than 50% of the park is preserved in native and/or natural vegetation, are found to experience, on average, the largest increase in sale price. The open space size that maximizes a home's sale price is calculated for each open space type. Natural area parks require the largest acreage to maximize sale price, and specialty parks are found to have the largest potential effect on a home's sale price. A zonal approach is used to examine the relationship between a home's sale price and its distance to an open space. Natural area parks and specialty parks are found to have a positive and statistically significant effect on a home's sale price for each zone studied. Homes located adjacent to golf courses (within 200 feet) are estimated to experience the largest increase in sale price due to open space proximity although the effect drops off quickly as distance from the golf course increases. © Western Economic Association International.