| Urban planners, city official, appraisers, and households are concerned about the effect of nonresidential land use developments on residential property values. Their concern is over the potential effects of negative externalities such as traffic congestion, noise, lighting, and pollution on the values of surrounding residential properties. Indeed, the potential for negative externalities has often been cited in public hearings and municipal planning departments as a primary reason for the establishment of zoning districts. The objective of the public policy is to minimize the negative impact of these developments on the values of surrounding residential properties. Such public debates are frequently fueled more by emotion and misinformation than by statistical evidence. This study provides statistical evidence about the effects of shopping centers of varying sizes on the values of surrounding residential properties.; Three cases of shopping centers have been studied and analyzed. A common model is found for these centers, and the variables which significantly affect the values of properties are identified. The radial distance from larger shopping centers was found to affect significantly the values. In both cases of shopping center complexes studied, the values of surrounding residential properties increased up to a distance of about 6,000 feet. The price-radial distance relationship from each complex was found to be concave in shape.; The findings show that present buffer areas between commercial developments and residential properties are not large enough to minimize the impact on the values of residential properties. If the objective of public decision makers is to minimize the impact of larger shopping centers, local officials should delineate sufficiently large zoning areas for such nonresidential land uses.; For appraisers, this dissertation identifies the significant variables affecting values of residential properties near shopping centers.; The implication for the households is that less expensive housing is located closer to larger shopping centers than the more costly residences. |
