The Impact of Apartment Complexes on Property Values of Single-Family Dwellings West of

94 Pages·2017·4.16 MB·English

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Lesli M. Rawlings
University of Nebraska at Omaha
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Rawlings, Lesli M., "The Impact of Apartment Complexes on Property Values of Single-Family Dwellings
West of lnterstate-680 in Omaha, Nebraska" (2002). Student Work. 1145.
https://digitalcommons.unomaha.edu/studentwork/1145
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The Impact of Apartment Complexes on Property Values of
Single-Family Dwellings West of Interstate-680 in Omaha, Nebraska
A Thesis
Presented to the
Department of Geography and Geology
and the
Faculty of the Graduate College
University of Nebraska
In Partial Fulfillment
of the Requirements for the
Master of Arts Degree in Geography
University of Nebraska at Omaha
by
Lesli M. Rawlings
July 2002
UMI Number: EP73385
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THESIS ACCEPTANCE
Acceptance for the faculty of the Graduate College,
University of Nebraska, in partial fulfillment of the
Requirements for the degree Master of Arts,
University of Nebraska at Omaha.
Committee
Chairperson ' 'N \ \ ^ ’s\ ' \
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The Impact of Apartment Complexes on the Property Values of
Single-Family Dwellings West of Interstate 680 in Omaha, Nebraska
ABSTRACT
Lesli M. Rawlings, M.A.
University of Nebraska, 2002
Advisor: Dr. Charles R. Gildersleeve
The literature concerning land use exhaustively describes why homeowners
dislike apartment complexes, but fails to analyze the problem quantitatively. The
objectives of this thesis were to determine if the selling price of single-family dwellings
increased with increasing distance from the apartment complex and to determine if the
selling price of single-family dwellings decreased with increasing structural density of
apartment complexes in Omaha, Nebraska. Fifty apartments built in the year 2000 or
before, and 1,665 single-family dwellings, which sold in 1999 and 2000 within 914.4
meters of an apartment complex, were geocoded by address. Data needed to test the
hypotheses were sales price, structural characteristics of the dwellings, straight-line
distance, and the number of apartments influencing each dwelling. Quantitative methods
employed to test the hypotheses included a full and reduced attribute multiple regression
model, factor analysis, and regression analysis using factor scores. The results indicated
that sales price did increase with increasing distance from an apartment complex only
with the utilization of factor analysis and regression using factor scores. However, the
increased number of apartment complexes proved to decrease the sales price of single­
family dwellings when implementing all of the multivariate analyses.
ACKNOWLEDGEMENTS
The purpose of a Master’s thesis is to illustrate a student’s capability to complete
an original research project, which contributes to existing knowledge. For the most part,
completing a Master’s thesis is not effortless or unproblematic, but rather it is a thought-
provoking process, which requires a student to utilize knowledge acquired throughout her
academic career in addition to learning and implementing new methods of analysis. And
although I encountered typical problems associated with research such as sleepless
nights, writer’s block, paper jams, corrupted data files, meticulously examining databases
for errors, and receiving a white hair during the process; I feel that my pursuit to
complete a Master of Arts degree in Geography was a rewarding experience. I have
expanded my knowledge of geography in addition to meeting fellow geographers whom I
consider friends.
I would like to thank several people for their valuable assistance, especially my
thesis committee. I believe that my thesis advisor Dr. Charles Gildersleeve and
committee members Dr. Karen Falconer Al-Hindi, Dr. Michael Peterson, and Dr. Louis
Pol form the ultimate “Thesis Committee Dream Team.” I thank Dr. Gildersleeve for his
unwavering leadership as a thesis advisor who continually provided me with
encouragement. Dr. Gildersleeve contributed with ideas concerning urban geography,
land use studies, and his experience as a former Omaha Planning Board member. Dr.
Karen Falconer Al-Hindi provided invaluable assistance with this thesis, which included
introducing me to the geographers’ perspective of New Urbanism (neo-traditionalism), a
pictorial explanation of a reverse distance decay model, and suggesting an additional
viewpoint relating to the significance of my thesis. Dr. Peterson gave constructive ideas
with reference to measuring distance in Arc View and map development. I am grateful
for Dr. Pol who offered statistical assistance on various occasions and contributed to the
literature review with the article concerning the impact Section 8 housing on the value of
single-family dwellings. I would also like to thank Dr. Rutherford Platt, from the
University of Massachusetts, who granted me permission to use his zoning hierarchy
diagram, which I adapted for this thesis.
Former UNOmaha Geography students also played a crucial role with this thesis.
I would like to thank Shawn Simon, who assisted me with the data acquisition, answering
my detailed questions regarding structural characteristics of housing, and recalling
information from his extensive mental map of Omaha. Since the beginning of my
graduate studies, Laura Banker has been my GIS mentor. She has provided me with
insight regarding the creation of buffers in Arc View 3.2 and advising the implementation
of using Avenue Scripts to measure straight-line distance.
I give a special thanks to the Graduate Studies Department for awarding me the
$1,000 Thesis Scholarship for the Spring 2002 semester. This scholarship paid for
various expenses pertinent toward the completion of this thesis.
Last but not least, I would like to thank my parents Sonja and James Rawlings.
They have continuously supported my academic pursuits and without them I would not
have excelled as a graduate student. I hope I will be able to make similar sacrifices if I
have children.
CONTENTS
THESIS ACCEPTANCE................................................................................ ii
ABSTRACT..............................................................................................................................iii
ACKNOWLEDGMENTS.......................................................................................................iv
CONTENTS......................................................................................................................... vi
LIST OF ILLUSTRATIONS..............................................................................................viii
LIST OF TABLES...................................................................................................................ix
Chapter
1. INTRODUCTION...................................................................................................1
Nature of the Problem and Justification..................................................4
Research Objectives.....................................................................................6
Hypotheses and Rationale..........................................................................7
Significance of Research..............................................................................9
Definition of General Terms....................................................................10
Study Area....................................................................................................12
Chapter Summary.......................................................................................15
2. LITERATURE REVIEW...................................................................................16
Undesired Residential Properties.............................................................16
The Market Value of New Urbanism......................................................21
Price Distance Gradients with the Impact of Externalities................23
GIS Applications in Real Estate...............................................................25
Summary of Literature..............................................................................26
3. METHODOLOGY 29
Data................................................................................................................29
Data Acquisition...........................................................................................31
GIS Procedures. ........................................................................................32
Database Organization and Data Evaluation..........................................35
Data Analysis.................................................................................................36
Summary of Methodology..........................................................................39
4. DISCUSSION OF RESULTS...........................................................................41
Descriptive Statistics.....................................................................................41
Pearson Correlation......................................................................................43
Multiple Regression......................................................................................45
Factor Analysis.................................................... 48
Regression Utilizing Factor Scores.............................................................54
Summary of Results......................................................................................56
5. CONCLUSION....................................................................................................58
APPENDIX................................................................................................................61
A. ESRI Avenue Script..........................................................................................61
B. Scatter Plots: Sales Price Versus Housing Characteristics........................65
C. Scatter Plots: Sales Price Versus Hypotheses Variables............................69
D. Pearson Correlation Matrices........................................................................75
BIBLIOGRAPHY...................................................................................................80
LIST OF ILLUSTRATIONS
Figure Page
1. Hierarchy of Zoning..............................................................................................................2
2. Eagle Run Apartments Adjacent to Single-family Dwellings..........................................5
3. Conceptual Model of Distance.............................................................................................8
4. Conceptual Model of the Number of Apartments..............................................................8
5. Study Area...........................................................................................................................12
6. Typical Zoning Surrounding Apartments and Single-family Dwellings........................13
7. Heaviest Concentration of Apartments and Zoning.........................................................14
8. Methodological Design......................................................................................................30
9. ArcView 3.2 Interface........................................................................................................34
10. Component Plot in Rotated Space...................................................................................53