Posted: 14 Nov 2005
Using a hedonic pricing model, this paper investigates the responsiveness of residential property values in a well defined inner-city neighborhood of Kenosha, Wisconsin, to the presence of two small former industrial sites contaminated by various environmental pollutants, or brownfields, and a local neighborhood park, or greenspace. Using readily available data on sales and assessments for residential property in close proximity to the brownfields and the greenspace, we estimate well behaved and statistically significant property value gradients with respect to the park, the environmental amenity, and the brownfields, the environmental disamenities. These functions are then used to estimate the possible impact that brownfield remediation may have on total property value. We estimate that remediation and redevelopment of the brownfields into greenspaces would increase property values for the 890 neighborhood residences between $2.40 and $7.01 million. These results suggest that small brownfields have a measurable impact on property values and that readily accessible data can be used to help local policymakers make decisions on remediation issues.
Keywords: residential property values, brownfields, hedonic pricing model, central city, environmental amenities
Suggested Citation: Suggested Citation
Cloutier, Norman R. and Kaufman, Dennis A., The Impact of Small Brownfields and Greenspaces on Residential Property Values. Journal of Real Estate Finance and Economics, Vol. 33, No. 1, 2005. Available at SSRN: https://ssrn.com/abstract=845588