Research from the University of Cincinnati just published in the March issue of the Journal of Environmental Assessment Policy and Management measures the impact of brownfields on nearby residential property values in the City of Cincinnati.
In an article titled “Using Spatial Regression to Estimate Property Tax Discounts from Proximity to Brownfields: A Tool for Local Policy Making,” researchers Oana Mihaescu, a former UC regional development planning doctoral student now affiliated with the Stockholm, Sweden, research institute, HUI Research, and with Dalarna University, and Rainer vom Hofe, UC associate professor of urban planning, examine the property value impacts caused by 87 brownfield sites in Cincinnati. Most of these were located in older, more centralized neighborhoods like Camp Washington, Fairmount, Lower Price Hill, Price Hill, Westwood and along the I-75/Millcreek corridor.
In all, Mihaescu and vom Hofe analyzed more than 6,800 properties located within 2,000 feet of a brownfield. They found that for each 1 percent nearer to a brownfield a residential property stood, the value of the house depreciated nearly .1 percent (one tenth of one percent). Conversely, a 1 percent increase in distance from the closest brownfield corresponded to a nearly .1 percent (one tenth of one percent) increase in market value.
So, for the average house in their study, which had a market value of $103,108 and was located 1,205 feet away from the closest brownfield, that translated into a $92.09 impact for every 12 feet of distance.
Click here to read the complete article.
Source: Phys.org | March 27, 2013