The Value of Trail Access on Home Purchases

Abstract

We use hedonic analysis of home sales data from the Twin Cities Metropolitan Area to estimate the effects of access to bicycle facilities on home value. The model includes proximity to three distinct types of bicycle facilities, controlling for local fixed effects and open space characteristics. Interaction terms help distinguish between preferences of city versus suburban homebuyers. Regression results show that off-street bicycle trails situated alongside busy streets are negatively associated with home sale prices in both the city and suburbs. Proximity to off-street bicycle trails away from trafficked streets in the city is positively associated with home sale prices, with negative result in the suburbs. On-street bicycle lanes appear to have no effect in the city and are a disamenity in the suburbs. Policy implications include the following. Type of bicycling facility matters. On-street trails and roadside trails may not be as appreciated as many city planners or policy officials think. Second, city residents have different preferences than suburban residents. Third, larger and more pressing factors are likely influencing residential location decisions. The findings also suggest that urban planners and advocates need to be aware of the consequences of providing for bicycle facilities, as the change in welfare is not necessarily positive for all homeowners.