The Effect of a Large Urban Park on Real Estate Value

Abstract Analysis of property sales in the vicinity of 1,294-acre Pennypack Park in Philadelphia indicates a statistically significant rise in land value with closeness to park, when allowance is made for effect of type of house, year of sale, and special characteristics such as location on corner of block. Location rent due to the park ranges from approximately $11,500 per acre 40 feet from the park to $1,000 at 2,500 feet. It accounts for 33 percent of land value at 40 feet, 9 percent at 1,000 feet, and 4.2 percent at 2,500 feet. Each acre of parkland may be said to generate a value of $2,600 in location rent.