Parks and open space increase value of nearby homes

Study in Washington County quantifies increased values

How much more are you willing to pay for a home near a natural area: a park or trails, for example, a wooded area, a lake or wetland? In Washington County it’s $15,000, according to a new economic impact report due out at year’s end.

It has long been suspected that residents of the Twin Cities area value open space and natural areas and are willing to pay more to live near them, but it hasn’t been quantified—until now.

The economic sense of preserving natural areas

Research commissioned by the Embrace Open Space (EOS) campaign confirms that property values are higher for homes located near public parks and open space and now, in Washington County in the east metro, we know how much higher.

“Minnesotans intuitively know that being near natural areas increases home values,” said Susan Schmidt, State Director for the Trust for Public Land (TPL). “What this study does is put a dollar figure on the importance of natural amenities to home buyers. Higher home values, in turn, benefit local units of government.

“What it shows,” said Schmidt, “is the benefit and wisdom of investing in our region’s natural resources. Setting aside land for parks, improving water quality, protecting wetlands and wildlife, providing recreational opportunities—it all pays off, in terms of preservation, quality of life, and in actual dollars and cents.”

The Embrace Open Space study showed that homes within 100 feet of a natural area were, on average, worth $15,000 more than similar homes surrounded by other homes.

In the case of Washington County, the study evaluated home purchases between 2002 and 2005, and removed other variables affecting values such as floor area, lot size, and number of bedrooms, for example. The study found home buyers willing to pay $15,000 more for a home within 100 feet of a natural area.

When $15,000 in added value, per home, is applied to all homes next to natural areas throughout the county, the study concluded the total property value increase countywide amounted to $162 million.

Study may be expanded to other counties

The study of home values started with Washington County, with additional analysis likely in other metro counties. The research follows up on a survey conducted in 2005, which showed that nearly two-thirds of Twin Cities residents would pay between 10 and 25 percent more for a home that was within walking distance to open space.

“The economic impact report takes the research and evaluation to the next level,” said Jenna Fletcher, program coordinator for the EOS initiative. “It’s our hope and goal, as we continue this work, that we provide residents, decision makers, local officials, developers and others with facts with which to make informed decisions about investment, acquisition and preservation of natural areas.”

Metro communities approved ballot measures

In Andover, 54% of voters said “yes” to a $2 million bond measure to preserve water, wildlife and natural habitat areas.

In Plymouth, 64% of voters approved raising $9 million to acquire land for open space, greenways and parks. This is the second open space measure to pass in the city in 11 years.

Washington County residents, in fact, were asked on the Nov. 7 ballot whether to authorize $20 million in bonds for environmental protection and preservation. The referendum passed, which will prompt a $12 increase per $100,000 in property value.

“No one much cares for the prospect of property tax increases,” said Steven Dornfeld, a member of the Washington County Parks and Open Space Commission, as well as the Metro Council’s Public Affairs Director. “But when you’re talking about the kind of growth that the county and region are going to experience in coming years, it’s a small price to pay to make sure we preserve the qualities that attracted residents here in the first place.”

County officials say the money will be used exclusively for purchasing and protecting land.

Two other communities, Andover and Plymouth, in November also approved bond measures to raise money for parks and open space acquisition and development. Since 1988, Minnesota communities have approved 22 conservation ballot measures of 27 proposed, raising over $111 million for land and water conservation.

Across the nation on Nov. 7, according to TPL, voters in 23 states cast ballots on 130 different state and local conservation funding questions, and 102 – or 78 percent – were approved.

See the 2005 survey that launched the EOS initiative at the Embrace Open Space website. For a copy of the economic impact report due out at the end of the year, contact Embrace Open Space at 651-999-5306.

EOS is a collaborative working to increase awareness of the importance of natural areas in the Twin Cities region. There are more than a dozen participants, including the Metropolitan Council.