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The Economic Effects of Stormwater Best Management Practices (BMPs) on Housing Sale Prices in Washington, D.C

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  • Boyoung Park

    (Department of Plant Science and Landscape Architecture, University of Maryland, Plant Sciences Building, 4291 Fieldhouse Drive, College Park, MD 20742, USA)

  • Byoung-Suk Kweon

    (Department of Plant Science and Landscape Architecture, University of Maryland, Plant Sciences Building, 4291 Fieldhouse Drive, College Park, MD 20742, USA)

Abstract

This study aims to investigate the economic effects of stormwater best management practices (BMPs) on housing sale prices in Washington, D.C., BMPs play a significant role in mitigating multiple threats, such as water pollution, soil erosion, and property damage. While studies on the economic value of BMPs were limited, literature addresses that housing sale prices can be affected by nearby stormwater BMPs. This study addresses the following research questions: Do stormwater BMPs positively impact housing sale prices? How do proximity and number of structural BMPs affect the housing sale prices? We used the hedonic pricing method by applying multiple linear regression models to determine whether a set of independent variables significantly improved the models. Our primary findings indicate that BMPs have positive, negative, or no effects on housing sale prices. The proximity of BMPs inside of parks increased housing sale prices in all buffers. In contrast, the proximity of BMPs outside of parks and impervious roads decreased housing sale prices in all buffers. Percent tree canopy coverage negatively linked to a 50 m buffer and had no relationship with other buffers on housing sale prices. This study implies that BMPs impact housing prices and can be improved by landscape architects, policymakers, and stakeholders.

Suggested Citation

  • Boyoung Park & Byoung-Suk Kweon, 2024. "The Economic Effects of Stormwater Best Management Practices (BMPs) on Housing Sale Prices in Washington, D.C," Sustainability, MDPI, vol. 16(4), pages 1-15, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1498-:d:1336787
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    References listed on IDEAS

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    2. Noelwah R. Netusil & Sudip Chattopadhyay & Kent F. Kovacs, 2010. "Estimating the Demand for Tree Canopy: A Second-Stage Hedonic Price Analysis in Portland, Oregon," Land Economics, University of Wisconsin Press, vol. 86(2), pages 281-293.
    3. Steinnes, Donald N, 1992. "Measuring the Economic Value of Water Quality: The Case of Lakeshore Land," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 26(2), pages 171-176, June.
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
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