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How Do Single-Family Homeowners Value Residential and Commercial Density? It Depends

Acolin, Arthur; Colburn, Gregg; Walter, Rebecca J. (2022). How Do Single-Family Homeowners Value Residential and Commercial Density? It Depends. Land Use Policy, 113.

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Abstract

This paper develops estimates of the relationship between local density and single-family home values using 2017 transactions for five U.S. metropolitan regions: Chicago, Los Angeles, Minneapolis, Philadelphia, Seattle. Proposals to build new commercial and residential development projects that would increase local density commonly face opposition from local homeowners. Academic literature links the response from homeowners to concerns that higher density is associated with lower property values but there is limited empirical evidence establishing this relationship at the local level. We find a positive and significant relationship between density and house value in the core area of the five metropolitan regions we analyze. Within 7.5 miles of the center of these metropolitan regions, a 10% increase in surrounding built area density is associated with a 1.1–1.9% increase in house prices per square foot. For outlying areas, the estimates are smaller and even negative in several cases. We instrument density based on topographic and soil characteristics and find similar results. These findings point to the need for a more nuanced discussion of the relationship between local density and housing values.

Keywords

Population Density; Soil Density; Single Family Housing; Home Ownership; Housing Development; Housing Discrimination; Home Prices; Los Angeles (calif.); Density; Single-family House Value; Urban Form; Residential Development; Real Estate; Property Values; Residential Density; Development Programs; Housing; Estimates; Metropolitan Areas; Development Projects; Empirical Analysis; Families & Family Life; Soil Characteristics

Arthur Acolin awarded Tier 2 Seed Grant

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From Crisis to Community: Homeownership Access with Assistant Professor Arthur Acolin

College is a time of exploration and discovery for all students. It is a time that often shapes how we view the world. Going through this transition during a moment of turbulence in the world can shape that experience significantly, which is exactly what happened for Assistant Professor of Real Estate, Arthur Acolin. As an undergraduate, international student in the US in 2008, the housing bubble and subsequent recession shaped Acolin’s future as a researcher and professor. “The subprime crisis…

PhD in the Built Environment

The College of Built Environments consists of five departments that together provide one of the country’s few comprehensive built environment programs within one academic unit: Architecture, Construction Management, Landscape Architecture, Real Estate, and Urban Design and Planning. Together, this combination of departments enable faculty and students to engage almost the entire development process, from economic and environmental planning, real estate, regulatory processes, siting and design, through actual financing and construction, to facility management and adaptive reuse in subsequent stages. Thus, the college is inherently multi-disciplinary, not only in terms of the dimensions of reality that it treats, but also in regard to the specialized disciplines, methods, and practices that it employs: history, theory, cultural criticism, engineering, design, planning, urban design, energy sciences, acoustics, lighting, environmental psychology, ecology, real estate analysis, statistics, management, horticulture, soil science, law, public policy, and ethics. In addition, because of the College’s focus on comprehensive analysis and practice concerning the built environment and its interrelation with society, it is substantially engaged in interdisciplinary work with other units on campus and outside of the campus, including mechanical, civil, and electrical engineering; with public policy and the health sciences; with art and art history; with textual interpretation in the humanities; with many of the computing and digitization activities that range from digital arts to the information school and technical communications; with education and social studies and services; with sustainability and ecological programs, including urban ecology, geography, the College of Forest Resources (especially urban horticulture and urban forestry), and Ocean Science and Fisheries; with environmental and land use law.

The College’s interdisciplinary character is a good fit with the emerging trends in today’s complex world, where only a pluralistic and collaborative approach will generate the necessary learning and teaching, research, and service. If we are to provide, in the end, both disciplinary and professional means to promote environmental well-being, the diverse environmental specializations must be fully integrated. Thus, working outside traditional disciplinary and departmental categories, the College’s faculty will advance solutions to problems that demand interdisciplinary perspectives and expertise. Other UW units bring much to bear on the built environment and students are wholeheartedly encouraged to explore possible cross-campus connections both in obvious and seemingly unlikely places. The Technology and Project Design/Delivery specialization especially connects with Psychology, the Information School, Technical Communication, Computer Science and Engineering, and Industrial Engineering; the Sustainable Systems and Prototypes field with Civil Engineering, Electrical Engineering, Industrial Engineering, Mechanical Engineering, the Information School, Technical Communication, the College of Forest Resources (especially Eco-System Science and Conservation, Urban Horticulture and Urban Forestry), the Evans School of Public Affairs, Geography, Public Health, Ocean Science and Fisheries, and Social Work, Urban Ecology, and perhaps Advanced Materials and Manufacturing Processes and Nanotechnology; the area of History, Theory, and Representation with Textual Studies, Art History, Interdisciplinary Arts & Sciences at Tacoma, and Comparative History of Ideas.

Urban Design & Planning Interdisciplinary PhD

The Urban Design & Planning Interdisciplinary Ph.D. at the University of Washington is one of 39 Ph.D. programs in urban and regional planning in North America, and one of the oldest, founded in 1967.

This program brings together faculty from disciplines ranging from Architecture to Sociology to focus on the interdisciplinary study of urban problems and interventions. Covering scales from neighborhoods to metropolitan areas, the program addresses interrelationships between the physical environment, the built environment, and the social, economic, and political institutions and processes that shape urban areas. The breadth of this program permits students to pursue doctoral studies in the various aspects of urban design and planning as well as in a number of related social science, natural resource, and engineering areas.

The Program seeks to prepare scholars who can advance the state of research, practice, and education related to the built environment and its relationship to society and nature in metropolitan regions throughout the world. The program provides a strong interdisciplinary educational experience that draws on the resources of the entire University, and on the laboratory provided by the Seattle metropolitan region and the Pacific Northwest. The program emphasizes the educational values of interdisciplinarity, intellectual leadership and integrity, and the social values of equity, democracy and sustainability. It seeks to promote deeper understanding of the ways in which public decisions shape and are shaped by the urban physical, social, economic, and natural environment. The program envisions its graduates becoming leaders in the international community of researchers, practitioners and educators who focus on improving the quality of life and environment in metropolitan regions.

Arthur Acolin

Arthur Acolin is an Assistant Professor and Bob Filley Endowed Chair in the Runstad Department of Real Estate in the College of Built Environments at the University of Washington. He obtained his Ph.D. in Urban Planning and Development from the Sol Price School of Public Policy at the University of Southern California in May 2017. His dissertation, titled “Three Essays on Frictions in Housing Markets” looked at various market imperfections that affect household housing choices and impact their financial outcomes. His field of research is housing economics with a focus on international housing policy and finance. His particular interest is on how housing market institutions and market designs affect household access to housing (tenure choice, housing consumption and mobility decision). Prior to completing his Ph.D. Acolin was a Research Associate in the Real Estate department of the Wharton School at the University of Pennsylvania where he worked on housing, urbanization and economic development issues. He obtained a master in Urban Policy from the London School of Economics and Sciences Po Paris and an undergraduate degree in Urban Studies from the University of Pennsylvania.