The Influence of Artificial Water Canals on Residential Sale Prices

摘要

Research in the fields of environmental psychology and landscape architecture demonstrates that humans have an innate preference for natural water settings. Where other real estate pricing studies have focused on oceans and lakes, the study presented here evaluates the effect of artificial waterways, or canals, on single-family residential sale prices. A hedonic pricing model is developed to evaluate and isolate the influence of canal frontage on residential sale prices. The findings from this sample suggest a price premium for canal-front properties on the magnitude of 11%, on average, and further research is encouraged to examine the residential price effects of canals.