The Value of a Cul-de-sac

Cul-de-sacs provide homeowners with several benefits and features. Among them is reduced traffic. This results in increased security. Also, a cul-de-sac promotes a more interactive and close knit environment. This analysis will investigate whether there is a positive correlation between being located in a cul-de-sac and home values. The data collected for this study is from 83-1 Arlington, Texas. From that data, the variables will then be compared to see if they have an effect on home prices. And then finally, houses located on cul-de-sacs will be compared to all other houses to determine if, in fact, there is a premium for the location.

With the data used, the size, age, number of bedrooms, number of bathrooms, lot size and the location in relation to a cul-de-sac were all analyzed. The variable of site location was then broken down into three variables to find significance in the model. Dummy variables were used to analyze the variables of homes located on a cul-de-sac, homes located on a dead end street, and homes located within a grid type street. The model removed the variable of cul-de-sac location due to the lack of significance in the model.

In conclusion, the data determined that there is a price premium for homes located within a dead end street compared to homes located within grid type streets. The results of the regression model explain that cul-de-sacs do not have a big significance on home sale prices. Each area of study can have different results as cul-de-sacs can be more valuable in other areas than Arlington. After conducting this analysis, it is evident that homes on a cul-de-sac do not have any extra value however; homes located on a dead end street do have a small premium over other homes in the Arlington area.