Why Might Developers Be Reluctant to Build Conservation Subdivisions? Insights from Spatial Regression Analysis

Despite evidence that households pay more for lots or houses in conservation subdivisions, developers are sometimes reluctant to build them. I use a spatial autoregressive model to shed light on this contradiction. The presence of nearby conservation lots reduces the value of a given conservation lo...

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Bibliographic Details
Published in:Urban affairs review (Thousand Oaks, Calif.) Calif.), 2018-11, Vol.54 (6), p.1170-1190
Main Author: Mohamed, Rayman
Format: Article
Language:English
Subjects:
Aesthetics
Autoregressive models
Conservation
Density
Households
Houses
Housing
Independent variables
Regression analysis
Regulation
Regulations
Residential areas
Rural areas
Rural communities
Spatial analysis
Subdivisions
Variables
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Summary:Despite evidence that households pay more for lots or houses in conservation subdivisions, developers are sometimes reluctant to build them. I use a spatial autoregressive model to shed light on this contradiction. The presence of nearby conservation lots reduces the value of a given conservation lot. I present two possible explanations for this result: (1) Lots located close to each other are indicative of higher density, which is frowned upon by Americans, and (2) conservation lots compete for views and rural aesthetics, and the construction of one lot decreases their availability to other lots. Results for other independent variables corroborate these explanations. Developers’ reluctance to embrace conservation subdivisions in some locations might be a result of regulations that discourage their development. More research is needed on how regulations for conservation subdivisions vary across the United States and how these affect developers’ decisions.
ISSN:1078-0874
1552-8332
DOI:10.1177/1078087417709998