A Spatial Hedonic Analysis of the Value of Urban Land Cover in the Multifamily Housing Market in Los Angeles, CA

Little appears to be known about the value of urban green spaces (tree canopy cover and grassy areas) in a Mediterranean climate, or in relation to multifamily buildings. This study starts addressing this gap by quantifying the impact of urban green spaces on the value of 1197 multifamily buildings sold in 2003/04 in Los Angeles, California. To assess the robustness of the results, a spatial Durbin model is contrasted with a geographically weighted regression model and an extensive sensitivity analysis is conducted. It is found that increases in grassy areas either on the parcels of multifamily buildings or in their vicinity (200 metres outward from each parcel boundary) would typically not enhance their value and neither would more parcel tree canopy cover (TCC); by contrast, most multifamily properties would benefit from an increase in vicinity TCC. These results have implications for tree planting programmes that rely heavily on private property owners.