Abstract

Green spaces, or public parks, playgrounds, and athletic fields, are a community hub. Many studies have highlighted the benefits of green space on surrounding neighborhoods. However, comparatively little research has assessed the relationship between park proximity and housing sales price. In Pittsburgh, Pennsylvania, city officials have shown a renewed interest in increasing park access and quality, although no economic literature has examined role of green space in the housing consumption decision in the city. I develop a theory of green space preference in a consumer maximization framework to hypothesize that home prices will increase with proximity to green space. I then use a Spatial Auto-Regressive Moving Average (SARMA) model to estimate the impact of green space proximity on single family home sales prices in Allegheny County, Pennsylvania. My results show that house sales prices will decrease by 2.34% with each additional mile from green space. This indicates a price premium on access to green space, further exacerbating inequalities between high and low socioeconomic status neighborhoods. This research highlights the need for additional research into environmental justice topics in Pittsburgh.

Advisor

Luri, Moses

Department

Economics

Disciplines

Regional Economics | Urban Studies and Planning

Keywords

Green Space, Parks, Hedonic Pricing, Housing Prices, Spatial Econometrics

Publication Date

2021

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis Exemplar

McCullough Housing Price Data.dta (1373 kB)
Stata Dataset of Housing Price Data

McCullough Home Locational Data.shp (10498 kB)

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