Integrating property value and local recreation models to value ecosystem services from regional parks

Multiple ecosystem services of parks may be capitalized into the property values of nearby houses. A joint hedonic housing price model and recreation demand model evaluates how park services are capitalized into property values for two regional parks in Portland, Oregon. The hedonic model suggests parks are an amenity of bundled positive and negative services. A non-linear variable for the percentage of park land surrounding a home explains how parks affect property values the best. The optimal percentage within a half-mile neighborhood is around 20%. An improvement in the quality of parks for recreation by 30% increases the property value of homes five to ten miles away by 0.04–0.06%. Thus, programs that improve recreation access to parks can increase the property values of a community.

► Use an integrated hedonic housing price and recreation demand model. ► Find the amenity and recreation access value captured by house prices. ► The optimal percentage of surrounding land in parks one-half mile around a home is around 20%. ► An improvement in the quality of parks for recreation by 30% increases the property value of homes five to ten miles away by 0.04–0.06%. ► Programs that improve recreation access to parks can increase the property values of a community.