The Price Effects of Greening Vacant Lots: How Neighborhood Attributes Matter

Real Estate Economics (Forthcoming)

69 Pages Posted: 9 Aug 2021 Last revised: 20 Jun 2022

See all articles by Desen Lin

Desen Lin

California State University, Fullerton

Shane Jensen

University of Pennsylvania - Statistics Department

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ; University of Pennsylvania - Finance Department

Date Written: June 15, 2022

Abstract

We identify the effects of greening vacant lots on nearby housing prices and show how neighborhood attributes matter to these outcomes. Using data from a longstanding program in Philadelphia, we find that prices for houses within 1,000 feet of a greened vacant lot rise by about 4%, consistent with the literature, with the effect size increasing over time. Using the extensive data available in Philadelphia, we show how these effects vary by the attributes of the neighborhood in which they occur, with larger effects in areas with a high share of vacant land and higher-than-average median household incomes, with peak responses estimated at 19% and 15%, respectively. We demonstrate the importance of sample selection bias adjustment for identification of the effect of vacant lot greening.

Keywords: vacant lot, green space, amenity, Philadelphia

JEL Classification: R00, R11

Suggested Citation

Lin, Desen and Jensen, Shane and Wachter, Susan M., The Price Effects of Greening Vacant Lots: How Neighborhood Attributes Matter (June 15, 2022). Real Estate Economics (Forthcoming), Available at SSRN: https://ssrn.com/abstract=3899624 or http://dx.doi.org/10.2139/ssrn.3899624

Desen Lin (Contact Author)

California State University, Fullerton ( email )

Fullerton, CA 92834-9480
United States

Shane Jensen

University of Pennsylvania - Statistics Department ( email )

Wharton School
Philadelphia, PA 19104
United States

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104-6330
United States
215-898-6355 (Phone)

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

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