Valuing New Development in Distressed Urban Neighborhoods

Abstract

Abstract Abstract We estimate the effect of design on the assessed values of new housing units in high-poverty Chicago census tracts with a parcel-based hedonic regression in which we distinguish between three urban design types: enclave, traditional neighborhood development (TND), and infill. We find that urban design significantly affects housing values, and infill housing is more highly valued than either enclave or TND housing. We also examine the influences of individual urban design features and find that residents prefer entrances that face the street, and facades constructed from the same material as adjacent buildings. They also prefer parking in front of their homes, and to be buffered from public streets. We interpret the former to be preferences for greater integration into the surrounding neighbourhood, consistent with our findings on infill.