Valuing The Suburbs

Some home improvements that increase density in the suburbs can actually lower the value of a home.

1 minute read

November 30, 2004, 5:00 AM PST

By Chris Steins @planetizen


A recent effort to precisely gauge how much a particular improvement will addto a home's sale price reveals some surprising insights about the nature of the suburbs. Research shows that not all home improvements pay off—even somerather expensive ones. Hedonic modeling of recent sales data shows that characteristics such as professional offices and in-law suites can lower a suburban home's price.

This article explores the reasons why certain property elements actually devalue a house. It argues that the neighborhood context may determine the relative value of some housing characteristics. In general, features that add to a property's "urban intensity" can lower the sales price of single-family detached suburban homes.

The paper examines why suburban residents mostly resist changes that make their environment seem more like a city. It also considers what implications this resistance has for developers using New Urbanist design and suggests future research to better understand the market for denser and more urban suburbs.

[Editor's note: The link below is to a 400Kb PDF.]

Thanks to Chris Steins

Wednesday, December 1, 2004 in Opolis

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 21, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

Red SF Muni ticketing machine.

San Francisco Muni Raises Fares a Second Time

A 10–cent fare hike for adults is part of the agency’s plan to chip away at a growing budget deficit.

May 21 - San Francisco Examiner

Electric car charging station with several Chevy Bolts charging in parking lot of store in Bellingham, Washington

Electric Grid Capacity Could Hamstring EV Growth

Industry leaders say the U.S. electric grid is unprepared for the increased demand for power created by electric cars, data centers, and electric homes.

May 21 - GovTech

Top view new development riverside residential and commercial neighborhood with vacant land in Texas, USA.

Texas Bill Supports Adaptive Reuse in Commercial Areas

Senate Bill 840, which was preliminarily approved by the state House, would allow residential construction in areas previously zoned for offices and commercial uses.

May 21 - The Texas Tribune