Summary Post for Final Project

The Effect of Parks on Residential Home Values
The proximity of parks, green spaces, and trails can have an impact on residential home values. The analysis that is conducted explores the correlation between the proximity to parks and the sales prices. The data comprises of sales information from area 83-1 in Arlington, Texas. The sales information along with the distances to parks has been studied and evaluated. The main focus is to determine exactly how home values are affected by amenities such as parks, green spaces, and trails.
The descriptive variables of the analysis include property size, number of bedrooms, number of bathrooms, lot size, age, swimming pools, days on the market, and the distance to the nearest park. The variable of interest in this analysis is the distance of the parks and green spaces from the residential properties. 13% of the properties are located within 750 feet of a park; 28% of the properties are located 750 to 1,500 feet from a park, 35% of the properties are located 1,500 to 2,500 feet from a park, and 24% of the properties are located over 2,500 feet from a park.
After evaluating the park distances and the other variables of the properties, there is a strong correlation in park distances to sales prices. The regression analysis explains that there is a premium of approximately $4,763 for residences located within 750 feet of a park. The analysis also states that there is a premium of approximately $1,077 for residences located within 750 to 1,500 feet of a park. For homes located over 2,500 feet from a park, the analysis states there is a discount of $1,304. The model did not analyze the variable of homes located 1,500 to 2,500 feet from parks, due to the lack of significance.

Location (Summary Post)

The paper titled Location builds the case that distance from franchise restraunts can be accounted for in the sales price. Franchise restaurants are representative of major roads, commercial districts, noise, and light pollution. The hypothesis is that there is a "sweet spot" where postive externalities are maximized, and negative exernalities minimized. The distance is between 1 mile and 4/3 miles from franchise restaurants. It is believed that this distance allows for an adaquate buffer from commercial use while still allowing for convenient access.

H0: β(Distance>1) = 0 ; H1: β(Distance>1) ≠ 0

The model that was built to control for the age, size of the home, and lot is as follows:

YiF= β0 + β1(square feet) +β2(acres) + β3(age) + β4(Distance 4/3) +β5(Distance_between 1/3 and 2/3) + ε

In this model, Distance was turned into a dummy variable dividing 1.3 miles into four portions. Other portions were tested with no success. By splitting Distance into 1/3 portions, the explanatory value of the variable was maximized.

Several variables were thrown out of the model due to statistical irrelevance or issues with correlation. These include the dummy variables for beds and baths, school district, and Distance 1/3, and Distance 3/3. By removing these variable the model was stronger and more apt.

The F-Statistic measures the model's overall strength. The result is: 243.907
The R^2 Statistic is a measurement of confidence. The result is: .787
The Adjusted R^2 controls for the loss of df. The result is: .784
The t-statistics are listed in the order of the model: 2.317; 26.623; 2.951;
-5.453, 2.044; -1.653

After looking at the residuals (Histogram, Normal P-Plot of Standardized Residuals, and Scatter plot) they appear to be normal, linear, homoskedastic, and the kurtosis looked great. Multi-collinearity did not appear to be an issue either.

The end result with regard to the Distance 3/3 variable's B-coefficient is:

P(9,107.512 < B < 26,555.36) =.95


In conclusion, the null hypothesis is rejected.

Heteroskedasticity

Useful Links
White's Test
http://pages.infinit.net/rlevesqu/Syntax/RegressionRepeatedMeasure/WhiteTestStatisticsAndSignificance.txt
http://www.geocities.com/rlevesque/SPSS/HeteroscedasticityTestingAndCorrectingInSPSS1.pdf

Weighted least Squares
http://faculty.chass.ncsu.edu/garson/PA765/wls.htm

Article on New Urbanism and Property Values

I came across the following article on new urbanism and property values.

Song,Yan andGerrit-Jan Knaap, BNewUrbanism and HousingValues:ADisaggregate
Assessment,’’ Journal of Urban Economics, 2003, 54:2, 218–238.

I got reminded about Yogesh Patil's final project. Thought this might help him in his literature review.

Informal UTA-Fort Worth Reception Details...

I had no idea this was going on until Dr. Hansz mentioned it in class. Thanks Dr. Hansz. I'm placing the details here just in case someone else "didn't get the memo". I'm going and I hope to see some familiar faces there...

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MSRE Students:

Just in case you did not receive the e-mail from another source, you are invited to an informal reception for the UTA Real Estate Program in Downtown Fort Worth - Saturday, July 11 from 6:30 pm - 7:30 pm in the "Gallery 76102" at the UTA Fort Worth Center - 1401 Jones Street, Fort Worth, Texas 76102. This informal gathering is open to former, current, and prospective UTA Real Estate Students, Faculty, and Friends. The purpose of this gathering is to promote networking and socializing opportunities among the attendees as well as giving everyone the opportunity to see the new home for the Graduate Programs in Real Estate at the UTA Fort Worth Center in Downtown Fort Worth. At the conclusion of the reception at 7:30 pm, there will be an opportunity for those interested to move to another Downtown Fort Worth venue for dinner, drinks, and further interaction with other attendees. In order to adequately order appetizers and drinks, please send your RSVP to Fred Forgey at forgey@uta.edu before Saturday July 11th. You are welcome to bring your friends, spouses, significant others, etc.
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The Effect of Noise on House Prices

Abstract: The purpose of this study is to examine the effects of noise level on house prices of the area near the Atlanta Airport. We find that noise level and house prices are negatively related. The results indicate that house prices discount $10,505.45 for noise level at 40 after controlling for size of house, age of the house, and number of months old from the first house sale in sample. This evidence is consistent with earlier empirical findings.

SPSS 17.0 Gradpack update

FYI...There is a free update for those who are using SPSS Gradpack version 17.0. The update upgrades version 17.0 to version 17.0.2 and fixes some internal bugs as well as import/export problems, table display problems, among others. On the SPSS toolbar, go to Help - Check for Updates. Then follow the directions.


Eduardo (Ed) Torres-Valdez