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The influence of urban design packages on home values

Christopher Bitter (Runstad Center for Real Estate Studies, University of Washington, Seattle, Washington, USA)
Andy Krause (Department of Property, University of Melbourne, Albert Park, Australia)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 3 April 2017



The purpose of this study is to examine the impact of neighborhood design templates on residential home values in King County, WA, USA. Previous research examines a number of individual design factors; this study combines these factors into typologies and tests for the impacts of the composite set of design features.


The study analyzes over 27,000 home sales with a hedonic price model to measure the impacts across three large, regional submarkets. Neighborhood design categories are developed using a cluster analysis on a set of individual neighborhood attributes.


The key finding from this research is that the impact of more traditional (“urban”) design packages on home values is highly contextual. For the older and denser neighborhoods in the study area, a more traditional design results in a significantly positive impact on home values. In the new and more suburban regions of the study area, this effect is not found.


Prior work focused on valuing design attributes individually. The study argues that neighborhood design is better conceived of as a “package”, as the value of a given design element may depend on other co-located attributes. This is the first study, to the authors’ knowledge, to treat physical neighborhood design variables as a composite whole and to attempt to value their impact on home values as such.



Bitter, C. and Krause, A. (2017), "The influence of urban design packages on home values", International Journal of Housing Markets and Analysis, Vol. 10 No. 2, pp. 184-203.



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