The Journal of Real Estate Finance and Economics

, Volume 41, Issue 2, pp 150–169

A Spatial Autocorrelation Approach for Examining the Effects of Urban Greenspace on Residential Property Values

  • Delores Conway
  • Christina Q. Li
  • Jennifer Wolch
  • Christopher Kahle
  • Michael Jerrett
Article

Abstract

This paper presents spatially explicit analyses of the greenspace contribution to residential property values in a hedonic model. The paper utilizes data from the housing market near downtown Los Angeles. We first used a standard hedonic model to estimate greenspace effects. Because the residuals were spatially autocorrelated, we implemented a spatial lag model as indicated by specification tests. Our results show that neighborhood greenspace at the immediate vicinity of houses has a significant impact on house prices even after controlling for spatial autocorrelation. The different estimation results from non-spatial and spatial models provide useful bounds for the greenspace effect. Greening of inner city areas may provide a valuable policy instrument for elevating depressed housing markets in those areas.

Keywords

Housing value Urban greenspace Hedonic pricing model Spatial dependence 

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Delores Conway
    • 1
  • Christina Q. Li
    • 2
  • Jennifer Wolch
    • 2
  • Christopher Kahle
    • 2
  • Michael Jerrett
    • 3
  1. 1.Marshall School of BusinessUniversity of Southern CaliforniaLos AngelesUSA
  2. 2.Department of Geography, College of Letters, Arts and SciencesUniversity of Southern CaliforniaLos AngelesUSA
  3. 3.School of Public healthUniversity of CaliforniaBerkeleyUSA

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