Monday, May 22, 2023

Evaluating Property Value Impacts from Water-Related 'Green Infrastructure': A Hedonic Modeling Approach

Over the past several decades, the rapid growth of Southwestern United States desert cities is creating significant climate and water scarcity challenges. City planners are using green infrastructure to mitigate these challenges and develop more livable, sustainable, and resilient communities. This study uses hedonic pricing modeling (HPM) to evaluate how constructed wastewater wetlands impact home values integrated into the project design. It compares Crystal Gardens in Avondale, AZ, consisting of 14 engineered wastewater filtering ponds, to nearby neighborhoods with desert landscaping. HPM revealed higher values for Crystal Gardens homes overall (7%) and significant increases for homes on the ponds (14%). Results demonstrate the economic value of integrating water-related infrastructure in desert cities for home sales. For a more accurate benefit assessment, additional research is needed on how the ecosystem services provided by these constructed wetlands contribute to greater property values.

by Jonathan Davis; Bjoern Hagen; Yousuf Mahid; David Pijawka
Journal of Green Building via Allen Press
Winter, 2023;  Volume 18, Issue 1, pages 3–16.

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