Sunday, January 26, 2014

The Effect of Community Gardens on Neighboring Property Values

For a metropolis the size of New York City, space can certainly be a point of contention. However, how can one compare a space that hosts a high-rise apartment complex that rakes in tax dollars for the city with a small park that offers zero commerce? Or, what about a community garden? When an engaged citizen approaches their municipality and speaks of numerous benefits for the community that accompany the instillation of community gardens (fresh produce in the neighborhood, recreational offerings, community building, etc.), there is now data which may support their cause in terms of the effect of community gardens on surrounding property values.

This study, conducted by Ioan Voicu and Vicki  Been in 2008, seems to provide evidence that the presence of community gardens significantly impacts property values in the immediate vicinity over time for the better. The authors point out that there isn't really an unbiased manner of assessing the utility of a space dedicated for a community garden or if there’s an adequate amount of time before the space can be appropriated for another purpose. Their study focused on gardens located in New York City and the property values of lots within and outside of 1,000ft from a specific garden. This ring permits the researchers to compare the difference in prices for properties in and outside the space before and after the garden was opened.

Of course, it’s not quite that simple. Gardens are likely to be installed in places that have cheap property values to begin with, so there’s no guarantee that those properties weren't already increasing with value regardless of the presence of a new garden. But, one can use statistical models which eliminate much of this bias.

The results from the study clearly indicate that property values within the 1,000ft ring increased in value over five years at a wider margin than those properties in the surrounding neighborhood. The study also determined that this effect was more profound in disadvantaged neighborhoods and that the quality (determined by various criteria including accessibility to the general public, fencing attractiveness and permanence, cleanliness, landscaping quality, presence of decorations, existence of social spaces and overall condition of the garden) of the garden affected the margin of difference in property values.




It’s important to note that this is a correlation and not a causality because who’s to say that it is the garden itself and not the type of neighborhood that includes engaged citizens that might install a garden that is accounting for these differences. Nonetheless, this study is great news for the community garden movement. In a city landscape where economics are often divisive for decision-making, it is hard to argue with the clear benefits derived by the areas surrounding these hubs of vegetable productivity. 

Voicu, I., & Been, V. (2008). The Effect of Community Gardens on Neighboring Property Values. Real Estate Economics36(2), 241-283. doi:10.1111/j.1540-6229.2008.00213.x

3 comments:

  1. This article took a less used route that made it worth the read. As an average citizen, I am more often exposed to a polarized depiction: either environmentalists lauding the physical and social benefits or cornucopians presenting discouraging cost estimates. This article finds a middle ground that is easily relatable to all who might come in contact with a community garden project.

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  2. Agreed: correlation not causation. I would love to see an analysis of livelihood/ health of lower-income communities with gardens in contrast to property value.

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  3. What about the effects of failed community gardens or similar community initiatives? Do these have a similar causality in the opposite direction? This could possibly used to quantify the value of a garden's success/failure.

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