Residential Property Values and the Built Environment

Abstract

By taking advantage of two recent data sets with exceptional spatial detail, this research is a comprehensive and spatially disaggregate study of the relationship between the built environment and residential property values in the Boston, Massachusetts, metropolitan area. The study computes 27 built environment variables at a 250 m × 250 m grid cell level, uses factor analysis to extract five built environment factors to mitigate multicollinearity, and integrates built environment factors into hedonic price models. Spatial regression techniques are applied to correct spatial autocorrelation. Residential property values are found to be positively associated with accessibility to transit and jobs, connectivity, and walkability and negatively related to auto dominance. Built environment effects depend on neighborhood characteristics.