Greening Vacant Land

          Green Infrastructure Symposium




                    October 21, 2009
                Pi...
Objective: Creating communities of lasting value

 From blight to hope
 Quality of life for families
 Neighborhoods wit...
Green in perspective

 fostering communities that are not just environmentally
  sustainable
 economically strong and eq...
City Strategies

   Chicago
     Mayor Daley's initiative for gardens:
          If city-owned, procedure exists to per...
Penn Institute for
                                             Urban Research
                                           ...
Philadelphia Green

 Neighborhood Transformation Initiative (NTI): City commits
    $10 million in city funds for minimum...
Learning how to do this, a work in progress

• Stabilization/“Clean and Green”
  • Costs $1.50 per sq ft. to “clean and gr...
Office of Sustainability
Philadelphia’s Challenges
Philadelphia Green
Reclaim Abandoned Land
Green-city Strategies and
           Neighborhood Value

                        THE STUDIES
Wachter, Susan M; and Wong, G...
Public/Private Partnerships
to Conserve and Improve Community Assets

• Problem and potential: how to realize the enormous...
Why the Study?
 • Need to quantify impact of policy
 • Deficit in hard data
 • Provide evidence as a tool for advocating f...
Quantification Methods
• Data on house sales, prices and location of
  greening investment from City and
  Pennsylvania Ho...
Multivariate Hedonic Regression Analysis
With the first 3 interactive terms measuring the effects of
proximity to greenspa...
What matters for housing prices

 Physical attributes
    more square footage;
    a larger lot size;
    better physi...
Quantifying benefits of community investments




 Commercial corridor improvement
 Vacant land management
 Neighborhoo...
Vacant land management


 Transition from abandonment to clean & green
 Adjacency to a neglected vacant lot subtracts 20...
Impact of Public Investments

<= ¼ mile to a commercial corridor in
                                           23%    $19,...
Neighborhood greening



 Tree plantings, streetscapes -- container plantings,
  small pocket parks
 Overall increase in...
Empirical strategy: trees

 All single-family house sales in
  Philadelphia
 Housing characteristics
 Exact locations o...
Fairmount Tree Plantings Between Sales
                          controlling for tract-specific linear price trends


    ...
 The visual and psychological impact of even the
 simplest of streetscape improvements, such as
 planting a tree or insta...
Learning How to do this: Work in Progress

Overarching Questions:
 How does the transformation occur?
 From blight to [?...
Thank You
      Susan M. Wachter
Richard B. Worley Professor of Financial
               Management
  Professor of Real Es...
Greening Vacant Land
Greening Vacant Land
Greening Vacant Land
Greening Vacant Land
Greening Vacant Land
Greening Vacant Land
Greening Vacant Land
Greening Vacant Land
Upcoming SlideShare
Loading in …5
×

Greening Vacant Land

1,339 views
1,279 views

Published on

Presentation given by Dr. Susan Wachter, 10.21.09

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,339
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
18
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Greening Vacant Land

  1. 1. Greening Vacant Land Green Infrastructure Symposium October 21, 2009 Pittsburgh, Pennsylvania Susan M. Wachter Richard B. Worley Professor of Financial Management Co-Director, Penn Institute for Urban Research The Wharton School University of Pennsylvania
  2. 2. Objective: Creating communities of lasting value  From blight to hope  Quality of life for families  Neighborhoods with green space encourage community interaction, create safe blocks, bring nature to the city, promote healthy living and reduce crime rates, social isolation and visual blight  Learning how to do this is a work in progress.
  3. 3. Green in perspective  fostering communities that are not just environmentally sustainable  economically strong and equitable  six principles of sustainable communities outlined in the interagency partnership among HUD, DOT, and EPA:  increased transportation choices  increased equitability, affordable housing opportunities  increased economic competitiveness  support for existing communities  leveraging of federal investment  value of communities and neighborhoods
  4. 4. City Strategies  Chicago  Mayor Daley's initiative for gardens:  If city-owned, procedure exists to permit gardening with relative ease  If privately owned, city assists with identifying owner and securing permission  If gardeners intend to stay for more than three years, referred to NeighborSpace, a non-profit that specializes in the management of community gardens and parks in Chicago.  CitySpace Program: unprecedented agreement between the City of Chicago, Chicago Park District, Forest Preserve District of Cook County, and Chicago Public Schools. In targeting greening projects on vacant lots, school playgrounds, and underutilized land along the Chicago River, the cooperative effort is helping Chicago achieve its open space goals, especially in neighborhoods where the amount of public land falls far below local and national standards.  http://www.afreshsqueeze.com/articleDtl.php?id=4a688243af834  New York Bette Midler and New York Restoration Project started in 1995 to beautify open space and promote community gardening and expand community programs and encourage public pride  MillionTreesNYC - started in 2007 to plant 1M trees in the 5 boroughs by 2017  http://www.nyrp.org/Parks_and_Gardens/Community_Gardens  City Spaces program targets NYC neighborhoods least served by the current park system. For each $1 million playground, funding is raised by Trust for Public Land matched two-to one by the Dept of Education. TPL has created or enhanced more than 250 neighborhood parks in New York City, investing roughly $200 million in land purchases and in the design, construction, and stewardship of parks.  Flint, Genesee County  http://www.thelandbank.org/
  5. 5. Penn Institute for Urban Research City in the 21st Century Series: University of Pennsylvania Press, 2008 www.upenn.edu/penniur www.upenn.edu/pennpress •“Green InvestmentStrategies: How They Matter for Urban Neighborhoods” – Susan Wachter, Kevin Gillen, and Carolyn Brown •“Transforming Through Greening” – J. Blaine Bonham Jr. and Patricia Smith
  6. 6. Philadelphia Green  Neighborhood Transformation Initiative (NTI): City commits $10 million in city funds for minimum 5 years, plus $296 million in bond proceeds  Vacant Lot Clean-up Program (VLCP) under Office of Managing Direct -- $4 million to clean 31,000 lots in first year with 225 staff  Department of Licenses & Inspections certifies lot as blighted to permit city access  Philadelphia-based landscape contractors do the actual work  Community Land Care, organized by Philadelphia Green, recruits maintenance workers: great opportunity for organizations that seek work for formerly homeless, ex-convicts, etc.
  7. 7. Learning how to do this, a work in progress • Stabilization/“Clean and Green” • Costs $1.50 per sq ft. to “clean and green” a lot • Costs ~ $2000 for an average size lot • Maintenance • Costs $0.17 per sq ft. to maintain a lot (14 clean-ups April-October) • Costs ~ $200 for an average size lot • Community Land Care Program and other programs • Since inception, ~ 10,000 total parcels • http://www.philly.com/philly/news/local/64889342.html • The Genesee County model, “State Rep. John Taylor (R., Phila.) has introduced a bill establishing a land bank to take moribund property from neglectful owners.”
  8. 8. Office of Sustainability
  9. 9. Philadelphia’s Challenges
  10. 10. Philadelphia Green Reclaim Abandoned Land
  11. 11. Green-city Strategies and Neighborhood Value THE STUDIES Wachter, Susan M; and Wong, Grace, “What is a Tree Worth? Green-City Strategies and Housing Prices”, Real Estate Economics, Vol. 36, No. 2, 2008. Available at SSRN: http://ssrn.com/abstract=1084652 Wachter, Susan; Kevin Gillen; and Carolyn Brown, “Green Investment Strategies: A Positive Force in Cities”, Communities & Banking, Federal Reserve Bank of Boston, Spring 2008. Available at: http://www.community-wealth.org/_pdfs/news/recent-articles/04-08/article- wachter-et-al.pdf Wachter, Susan M; Kevin Gillen; and Carolyn Brown, “Green Investment Strategies: How They Matter for Urban Neighborhoods”, Growing Greener Cities, Ed. Eugenie L. Birch and Susan M. Wachter. Philadelphia: University of Pennsylvania Press (http://www.upenn.edu/pennpress), 2008. pp. 316 – 325.
  12. 12. Public/Private Partnerships to Conserve and Improve Community Assets • Problem and potential: how to realize the enormous benefits of reinvesting in blighted lands • Private spaces: individuals respond with their own decisions and actions • Public spaces: require shared governance and citizen stewardship for community action and public/private cooperation
  13. 13. Why the Study? • Need to quantify impact of policy • Deficit in hard data • Provide evidence as a tool for advocating for good policy
  14. 14. Quantification Methods • Data on house sales, prices and location of greening investment from City and Pennsylvania Horticultural Society • Hedonic study - before and after spatial investment impact on house prices, controlling for variables • Geographic Information Systems (GIS) econometric methods - implemented at Wharton’s GIS Lab
  15. 15. Multivariate Hedonic Regression Analysis With the first 3 interactive terms measuring the effects of proximity to greenspace, then the estimated regression results are: Pi  $45,000  $9,923  ( New Tree)  $1,164  (Bordering Park) (3.87) (1.29)  $10,750  (Greened Lot)  ......   K X K (1.55) More than 30 variables are in the regression specification including: building and lot square footage, number of stories and fireplaces, garage, central air, type and condition of exterior, year of sale, census tract, distance to CBD (City Hall), and number of years since last transaction. Adj. R2=0.60 N=70,000 This regression only used data from 2000-2005. Similar regressions using data from 1980-2005 used over 200,000 sales records in the estimation.
  16. 16. What matters for housing prices  Physical attributes  more square footage;  a larger lot size;  better physical condition;  the presence of fireplaces, central air conditioning, and/or a garage;  Proximity to downtown  State of the overall market
  17. 17. Quantifying benefits of community investments  Commercial corridor improvement  Vacant land management  Neighborhood greening strategies  Business Improvement Districts (BIDs)  Impact on quality of life: schools, public safety, public transit
  18. 18. Vacant land management  Transition from abandonment to clean & green  Adjacency to a neglected vacant lot subtracts 20% of value  Stabilizing lots impart an additional 17% of value to surrounding homes
  19. 19. Impact of Public Investments <= ¼ mile to a commercial corridor in 23% $19,021 “excellent” condition (net impact) ¼ to ½ mile to a commercial corridor in 11% $9,097 “excellent” condition (net impact) Near a new tree planting 9% $7,443 Improvements to streetscapes 28% $23,156 Adjacent to vacant lot -20% ($16,540) Adjacent to a stabilized and greened lot 17% $14,059 1% increase in crime index -14% ($11,578) High-school dropout rate -5% ($3,970) Located in a business improvement 30% $24,397 district <=1/8 mile to a subway station 3% ($2,481)
  20. 20. Neighborhood greening  Tree plantings, streetscapes -- container plantings, small pocket parks  Overall increase in house prices of 9% from tree plantings
  21. 21. Empirical strategy: trees  All single-family house sales in Philadelphia  Housing characteristics  Exact locations of house and tree plantings  Exploit the variation in time & location of housing sales relative to those of tree plantings
  22. 22. Fairmount Tree Plantings Between Sales controlling for tract-specific linear price trends All (ftrees) If td500=1 (ftrees) If td1000=1 (ftrees) -1 -2 -3 -4 -5 -6 lrprice lrpdiff lrprice lrpdiff lrprice lrpdiff Log lagged price 0.232 0.228 0.248 (0.005)*** (0.036)*** (0.024)*** Log lotsize 0.179 0.08 0.234 0.158 0.172 0.085 (0.007)*** (0.008)*** (0.049)*** (0.056)*** (0.031)*** (0.034)** Log building size -0.412 -0.156 -0.473 -0.301 -0.404 -0.201 (0.011)*** (0.013)*** (0.068)*** (0.076)*** (0.047)*** (0.052)*** Number of stories in the parcel -0.024 (0.004) 0.074 0.092 0.069 0.063 (0.008)*** -0.009 -0.046 (0.052)* (0.032)** (0.036)* exterior==FRAME (0.020) (0.011) 0.057 0.048 0.047 0.057 -0.016 -0.019 -0.128 -0.145 -0.076 -0.085 exterior==STONE 0.061 0.036 0.104 0.083 (0.004) (0.038) (0.017)*** (0.020)* -0.105 -0.12 -0.07 -0.078 =1 if parcel has a non-rectangular shape -0.034 -0.036 0.097 0.085 0.048 (0.008) (0.011)*** (0.014)*** -0.079 -0.09 -0.049 -0.055 =1 if parcel has central air conditioning 0.143 0.135 0.213 0.029 0.170 0.004 (0.054)*** (0.064)** -0.245 -0.277 -0.236 -0.265 =1 if parcel has garage 0.106 0.043 0.091 0.045 0.066 0.020 (0.007)*** (0.008)*** (0.046)** -0.052 (0.031)** -0.035 =1 if property is detached 0.037 0.038 (0.014) 0.023 0.019 0.057 (0.013)*** (0.015)** -0.081 -0.092 -0.053 -0.059 Time since previous sale -0.073 0.308 -0.116 0.861 -0.098 0.792 (0.004)*** (0.004)*** (0.059)** (0.043)*** (0.039)** (0.030)*** pTime since previous sale 12.67 -132.491 32.852 -273.837 23.09 -267.226 (1.410)*** (1.318)*** (17.992)* (12.627)*** (12.072)* (8.832)*** Tree planting within 100ft between sales 0.134 0.092 0.027 0.003 0.038 0.020 *controlling for year and quarter fixed effects (0.038)*** (0.045)** -0.039 -0.044 -0.039 -0.043 Linear trend X census tract dummies Yes Yes Yes Yes Yes Yes Observations 71003 71003 1994 1994 4343 4343 R-squared 0.64 0.21 0.75 0.54 0.71 0.45
  23. 23.  The visual and psychological impact of even the simplest of streetscape improvements, such as planting a tree or installing a sign, makes a huge impact on creating a quality environment and defining a place. There is no question that streetscape improvements increase housing values and make the public environment more appealing. – Nancy Goldenberg Vice President of Planning Center City District
  24. 24. Learning How to do this: Work in Progress Overarching Questions:  How does the transformation occur?  From blight to [?]  Side lots  Community gardens  Open space  Local farming Implementation Questions:  Economic development and land disposition?  Land purchase or guerilla gardens?  Who is to maintain?  Providing for an evolving future? But we do know that going from blight to green works!
  25. 25. Thank You Susan M. Wachter Richard B. Worley Professor of Financial Management Professor of Real Estate and Finance The Wharton School University of Pennsylvania wachter@wharton.upenn.edu

×