The Property Value Effects of the South Ridgeline Trail

1
The Property Value Effects of the South Ridgeline
Trail

• By
• Jared Durham
• Dane Jensen

2
Methodology Hedonic Pricing

• Hedonic Price model attempts to assign values to
  various amenities that markets dont capture
• Model assumes
• People have full information of various housing
  alternatives when buying a house
• People are free to buy a house where they want
  and can increase any characteristic of a house
  that they wish by finding other locations with
  more of it
• Property values are attributable to a bundle of
  characteristics

3
Data

• Data consists of 13,106 observations of home
  sales and housing their housing characteristics
• Area observed is bounded by Chambers St., I-5,
  24th St., and the Urban Growth Boundary
• After screening for related party transactions
  and erroneous entries, we had 5,091 observations
• To adjust for inflation and appreciation we set
  up a dummy variable for each year

4
Data Area
5
Models

• We used our data to run four different models in
  both linear and semi-log form to explain
  differences in housing prices
• Model 1 considers housing characteristics only
• Model 2 adds locational attributes to model 1
• Model 3 adds proximity to schools variables to
  model 2
• Model 4 replaces year specific variables with
  general trend variable

6
Table 1 Summary Statistics
7
Table 2 Summary of Housing
8
Table 3 Regression Models
9
Table 4 Trail Benefits
10
Empirical Results

• All models are consistent in the signs of their
  coefficients across all functional forms
• A decrease in value of approximately 6.77 for
  every additional foot from nearest trailhead
• A decrease in value of approximately 0.10 for
  every 1 increase in distance.

11
Conclusion

• Estimated property value increases range from 80
  to 300 million
• Estimated property tax revenue increases range
  from 0.64 to 4.5 million

12
Questions?