Is a High-quality Park Worth the Cost? : Hedonic Analysis of Housing Market near the High Line, New York City

서지정보

· 발행기관 : 대한국토·도시계획학회
· 수록지 정보 : 국토계획 / 48권 / 7호 / 135 ~ 152페이지
· 저자명 : 윤희연

초록

In the post-industrial era, consumption- inducing economic sectors, such as tourism, entertainment and recreation industries, are considered alternative economic engines that filled the gap left by the loss of manufacturing (Hannigan, 2003; Clark, 2003; Clark, Lloyd, Wong & Jain, 2002; Judd & Fainstein, 1999). In addition to attracting tourists and visitors, these economic sectors are also expected to synergize the promotion of knowledge-intensive and creative industries, whose workforces are believed to favor certain urban atmospheres (Storper & Scott, 2009; Glaeser 2005; Florida, 2002).
Parks have gained attention in this new mission (Harnik, 2010). Cities such as Chicago and New York have developed destination parks to attract visitors and potential residents beyond the level that conventional parks normally did. The outstanding influence of such parks and open spaces generally depends on elaborately designed, upscale development, with higher than typical budgets. Chicago’s former Mayor, Richard M. Daley, (in office; 1989 – 2011) conceived Millennium Park to reignite the dormant tourism industry, and employed a “shoot for the moon” strategy to maximize private donations to create the highest quality space (Gilfoyle & Chicago, p.97, 2006). Mayor Michael R. Bloomberg (in office; 2002 – 2013) also enlisted “unequaled amenities” (Brash, p.122, 2011) to distinguish New York City from other cities in the competition for the new elites, defined as creators of economic vitality.
The High Line, a public park converted from a former freight railway, is one of the “flagship parks” (New York City, 2007) that the city and its private partner, Friends of the High Line (FHL), actively used as a means to revitalize a declining neighborhood. According to the New York Times, the park has increased the visibility of the neighborhood, consequently inducing two billion dollars in private investment on real estate and creating 8,000 construction jobs, in addition to the non-monetary benefits of enhanced health and safety in the neighborhood (McGeehan, 2011).
The most direct benefits to the city, among many others, are higher property taxes, through the appreciation of existing properties and the addition of new ones. The increased tax revenue potentially equals the initial development costs of the park (Bolitzer & Netusil, 2000; Crompton, 2005), and also helps municipalities to continue improving the living and business environment of the city.
While the High Line’s effect on the property market seems obvious from anecdotal evidence after the fact (Russell, 2011 among many), recent interest has not prompted quantitative research to corroborate such a claim. What is the magnitude of the proximity effect of the High Line on the nearby housing market, compared to the former state as an abandoned railway structure? What is the tax revenue implication of this transformation? And is it worth the cost?In this study, I conduct a hedonic price analysis to answer these questions. Using random-slope multilevel modeling, I analyze the residential market transaction datasets from two time periods—“after” and “before”—further deducing the difference between the effects of the current High Line and of its preexisting condition, in order to reveal the amount of tax increment attributed to the High Line.

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