Who values urban open spaces? investigating heterogeneity in the capitalization of open space in New York city

Given the constraints on local budgets and the availability of urban land, understanding how different urban green spaces are valued by diverse residents is crucial for making informed urban land use decisions. We estimate the heterogeneity in housing price capitalizations of various open space classes in New York City using a hedonic price model. Our findings reveal that the capitalization of open spaces varies across open space types and nearby housing types. For instance, compared to residents who live in properties with private outdoor spaces, residents in condominiums and cooperatives may place greater value on open spaces such as neighborhood parks or community gardens. Furthermore, we aim to uncover how demographic factors are associated with the valuation of different types of open spaces, focusing on two sets of community factors: median household income and racial composition. Our results show that areas with low-income populations or a predominance of non-white residents exhibit substantially different preferences from other groups, with an increased capitalization for community gardens and a decreased capitalization for flagship parks. These insights highlight the importance of investigating heterogeneity in the valuation of environmental amenities and can help policymakers allocate funds for environmental amenities to better align with the preferences of local residents.