01623355

Component

Pavement management agencies spend a significant amount of public money every year to maintain roads. This study uses hedonic regression to estimate the relationship between pavement condition and residential property value in Solano County, California. The authors hypothesize that pavement condition impacts property values in two ways: directly as an indicator of neighborhood blight, and indirectly through its effect on traffic conditions and noise. Both effects are expected to be in the same direction; as pavement condition declines, property values are expected to decline as well. They developed regression models for the County as a whole and for each city with the County. County-wide results indicate that there is no statistically significant relationship between pavement condition and residential property value. However, separate estimates for each city in the County showed a mixture of small positive, small negative, and zero relationships. Because the results are both mixed and small in magnitude, the authors cannot conclusively estimate the contribution of road pavement condition to the value of a home. The one conclusion they can draw is that to the extent that road pavement condition does contribute to home values, that contribution is probably small in dollar value. This suggests that although there are other reasons to improve pavement condition, property value may not be one of them.

This paper was sponsored by TRB committee AB020T Task Force on Value of Transportation Infrastructure.

01618707

17-05145

English

17p

2017

Transportation Research Board 96th Annual Meeting

Digital/other

Figures; References; Tables

Pavement maintenance; Pavements; Property values; Residential areas

Hedonic price models

Solano County (California)

Economics; Finance; Pavements; Planning and Forecasting

Transportation Research Board Annual Meeting 2017 Paper #17-05145

PRP, TRIS, TRB, ATRI

Dec 8 2016 12:00PM