This is the first comprehensive cost-benefit analysis of Leadership in Energy and Environmental Design (LEED) buildings certified within the higher education sector. Sixteen institutions of higher education (IHEs) were surveyed with the findings focused on the upfront green premium and down the line energy savings. The net present value (NPV), internal rate of return (IRR), and discounted payback period were calculated to determine the financial feasibility of LEED certified buildings within the higher education sector. The findings indicate mixed results when looking at the projects from both an upfront construction cost and full lifecycle perspective.
Author: Erin A. Hopkins]]>
We investigate the current status of sustainable value integration in Colorado’s real estate markets, an area with limited current / historical value attributed to sustainability. The property appraiser has an opportunistic position to influence stakeholders and potentially increase demand for sustainable building. The appraisal process, necessary inputs, and rules and regulations were studied using an exploratory sequential mixed methods approach to conduct a cross-sectional study through archival research, survey distribution, and the collection of quantitative and qualitative data. We confirm that Colorado’s real estate appraisers are increasingly integrating sustainable building features in appraisal assignments, despite existing challenges.
Authors: Laura Bently, Scott Glick, and Kelly Strong]]>
Realtors are seen as important enablers of behavior change toward a low-carbon future through the communication of sustainability measures to home buyers and sellers. In 2012 / 2013, research was conducted to assess Californian Realtors’ knowledge of, and perceptions towards, sustainable housing using an online survey instrument. The majority of respondents consider good insulation to be the most important feature to contribute to a more sustainable home, yet the green features that buyers most commonly ask about are dual-paned windows and tankless hot water. The biggest barriers to incorporating energy-efficient features into a home continue to focus on cost and poor access to information. Realtors could play a key role to overcoming barriers by providing accurate and relevant information to consumers to improve their understanding of energy efficiency and address misconceptions.
Author: Sandy Bond]]>
Preface, acknowledgements, introduction and description of papers included in this volume of JOSRE.]]>
The Emergency Planning and Community Right-to-Know Act (EPCRA) requires reporting of potential chemical hazardous sites to the Environmental Protection Agency (EPA). The EPA discloses some sites on the Internet while others are not. I investigate whether Internet disclosure makes a difference on the impact a hazardous site has on nearby housing prices. I also investigate the relevance of EPA-hazard classifications to understand the residential market reaction to nearby chemical hazardous sites. Data from Lubbock, Texas confirm that housing values near registered chemical hazards are lower, ceteris paribus; however, Internet-listed hazardous sites do not have a bigger
impact on housing prices than do hazards not listed on the Internet. But more importantly, hazard classifications other than EPA classification better define house price behavior.
Author: Perry Wisinger]]>
In this paper, I examine the impact of open space restrictions on neighboring house prices using hedonic modeling framework and GIS. The comparison is between two groups of parcels in Worcester, Massachusetts: one has a mixture of open space restrictions that limit or prohibit development and the other has a conservation easement. Conservation easement (CE) involves voluntarily restricted conservation worthy private lands from future developments in perpetuity. The sample used is single-family detached houses that were sold in 2005 to 2008. Since future development restrictions lower the property values and tax base for local communities, the findings confirm that spatially targeted CE parcels with proximity of, and visibility to CE parcels drive up the surrounding property values, thereby providing additional tax base and income to the communities.
Author: Jay Mittal]]>
This study is the first to use experimental design to look beyond the overall impact of power lines on property values by examining specific easement rights and noise pollution concerns. I find that in isolation, easement rights are associated with a non-significant reduction in property value, whereas noise pollution statistically significantly reduces property values. Interestingly, when easement rights are combined with noise pollution, the combined effect is more than additive. Results from the sample of eminent domain attorneys, who are valuation impact experts, reveals that females penalize a property more severely for being associated with power lines, and attorneys who typically represent property owners (as opposed to the condemnor) are more sympathetic to greater diminution values.
Author: Michael J. Seiler]]>
Residential treatment centers offer the most intense form of treatment for substance abuse and are often embedded in residential neighborhoods. As a result of the Patient Protection and Affordable Care Act, the number of treatment centers has been forecasted to burgeon. We examine the external effect of residential rehab centers on nearby
real estate. As addiction treatment centers are planned, a common response of nearby property owners is ‘‘not in my backyard’’ (NIMBY). Using a large MLS dataset from central Virginia, we estimate the impact of substance abuse treatment centers on nearby home prices and liquidity (as measured by time on market). We find that a neighboring treatment center is associated with an 8% reduction in nearby home prices, and that this discount is magnified for treatment centers that specifically treat opiate addiction (as much as 17%).
Authors: Claire R. La Roche, Bennie D. Waller, and Scott A. Wentland]]>
In this paper, we examine the economic impact of a tightly clustered complex of hog barns, a type of concentrated animal feeding operation (CAFO) on residential property in a rural area near Benton, Kentucky. The operation creates noxious and offensive odors associated with swine-raising and waste disposal activities. Theory and practice indicate that buyers would avoid purchasing a property believed to be contaminated or subject to effects of unsustainable environmental disamenities. Using hedonic regression analysis, the results show price reductions of 23%–32% for residential properties sold within 1.25 miles of the facility, and much larger losses northeast (downwind) of the facility.
Authors: Robert A. Simons, Youngme Seo, and Spenser Robinson]]>
Although the number of Leadership in Energy and Environmental Design (LEED) certified office buildings continues to increase, research on their spatial distributions in comparison to non-LEED buildings and mass transit links need to be explored in depth. This paper focuses on these aspects using all the downtown Chicago Class A office buildings as the study area. The findings show that LEED buildings are 21% closer to each other, indicating possible proximity pressure. LEED-Gold buildings are also 18% closer to each other compared to Silver. Regarding mass transit, LEED compared to non-LEED buildings are on average 14% closer to a metro area commuter rail station (Metra) and 12% closer to a local commuter rail station (CTA). In addition, LEED and non-LEED buildings show some evidence of small group clustering in certain areas, while the econometric results indicate that buildings located along the most prominent office market street (Wacker Drive) achieved 12% higher LEED points compared to other LEED buildings. A similar result was experienced among buildings built after 1979 and those certified under LEED v.2009 (12% and 19%, respectively). Additionally, LEED-Silver buildings achieved a lower number of points compared to other certification levels by 20%.
Author: Sofia Dermisi]]>