Will the New Park By My House Hurt Or Help My Home Value?

Introduction

House owners around the world always have had to worry whether their property value would rise or fall due to any changes in the locality. One of the changes that might take place is the conversion of the empty plot by house into a public park for the community. The effects of this development has long since confused the home owners as to how it would affect their property value and as a bigger picture, on the whole real estate value of the area, in addition to the other social changes that might come about.

History

Parks in a locality can be of different types. They can be greenbelts or boulevards which are long narrow green spaces provided to enhance the natural beauty of an area. Then there are neighbourhood parks, community parks and golf courses and open spaces. All types of parks have been statistically shown to improve upon the real estate value of the house. Thus having a park by house, irrespective of the type, shall increase its value.

A lot of research has been conducted across the United States and other countries alike to study the effects of parks by house on the real estate value of a community. It has been largely found that having a park in a community has in general helped in the real estate prices to rise. That is having a park by house is a good thing for the owner as it raises the property value. In a study conducted in United States it was found that neighbourhood parks can provide up to a 20% increase in housing values for those homes facing the park. Community parks also might increase the residential real estate value by 33%.

Features

It has also been found that the real estate value depends more on the proximity of park by house than the size of the park itself. Although a larger park does help, the factor is less important than the distance of house from the park. Homes within 1,000 feet of a large community park may receive a 9% increase in home value. Positive externalities of a community park may extend up to 2,000 feet. The appreciation of property value keeps on decreasing as the distance of the park by house increases.

Apart from just affecting the real estate prices of the community, parks also affect a community’s financial well being, environmental quality, social atmosphere, and health. A park by house is a blessing for the children as they can go outdoors and play with other children and have a better experience of growing up. The park might also be used by the adults for walks and jogging and help them stay fit.

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