The Indirect Price of Scenic Amenities: Evidence from Central Park Housing

A view of Central Park is one of the most sought-after features in the New York City housing market, yet it has no market price of its own. We estimate its value using the hedonic pricing method. Students in an applied environmental economics course at Manhattan University hand-collected data on 849 home sales surrounding the park from Zillow, recording housing characteristics, building amenities, distance to the park and whether each home has a Central Park view. Using ordinary least squares regressions of log sale price on these characteristics, we find that homes with a view of Central Park sell for about 22.6% more than comparable homes without one. Proximity also matters: each additional 100 meters from the park lowers sale prices by about 1%. These results show that Central Park's value extends beyond the people who visit it: its scenery is capitalized into the homes that surround it. Accounting for this value can inform decisions about park investment, building heights and the protection of urban views.

non-market valuation
revealed preferences
hedonic pricing method
urban parks
scenic views