Friday, August 12, 2011

New York City Parks and Their Impact on Residential Property Values
The City of New York Department of Parks & Recreation (“Parks Department”) oversees about 29,000 acres of land, slightly less than a fifth of all City land. Parks constitute the majority of such space: 16,600 acres, or 11 percent of total City land. The remaining space under the Parks Department’s management includes golf courses, stadiums, tennis courts, etc.  According to a report by The Trust for Public Land (“Trust”), in 2009, New York City had the highest percentage of park land among 14 other cities identified with similarly high population density, surpassing areas such as Washington. D.C, San Francisco and Boston.

Over a thousand acres of park land was added to the City from 2003 to 2011 according to property data from the NYC Department of Finance (DOF). About two thirds (794 acres) of the increase was due to one park reclassification and the re-opening of the McCarren Park in 2005, which was a pool park originally closed in 1984 and located in Williamsburg, Brooklyn
With approximately 25 million visitors, Central Park is the most visited city park in the U.S., according to the Trust. 7 NYC parks ranked in the country’s top 50 visited parks, including Prospect Park, Battery Park and Bryant Park.

Parks are amenities whose value is difficult to assess due to many intangible factors. However, in so far as they affect the quality of life, land values should vary based on the proximity to parks.

The New York City Economic Development Corporation NYCEDC analyzed property data around three of the City’s parks: Central Park (Manhattan), Prospect Park (Brooklyn) and the recently opened Highline Park (Manhattan). The analysis finds that land values of residential properties increase the closer they are to a park. Additionally, the increase in land values over time specifically for lower priced properties is also correlated with the proximity to the park.  This analysis is based on market value of land per square foot as estimated by NYC DOF. Data are from the Real Property Assessment Database between Fiscal Year 2002/2003 and
Fiscal Year 2010/2011.

On the east side of Central park, median values for properties between a 5 and 10 minute walk were 11 percent lower than those within 5 minutes from the park assuming a casual walking pace of 2-3 miles per hour. A similar trend was observed on the west and south sides of Central Park, Prospect Park, and the Highline. 

From 2003 to 2011, property values closest to the parks escalated over time at a faster rate in lower priced areas (relative to their neighborhoods bordering the park), such as Flatbush, Central Park West and Hudson Yards. Before the construction of the Highline Park in 2003, surrounding residential properties were valued 8 percent below the overall median for Manhattan, but had appreciated beyond borough-wide values by 2011. The trends among neighborhoods with relatively higher land values were not as conclusive

New York City Department  of Economic Development
Economic Snapshot August, 2011

No comments:

Post a Comment