Willingness to Pay for Ecoroofs in the Portland, Oregon Condominium Market

by Bloomquist, Lauren, BA

Abstract (Summary)
This thesis uses the hedonic property value model to understand the value of ecoroofs—vegetated roof systems that absorb stormwater—in the Portland, Oregon condominium market from January 2000 to September 2011. Based on the theory that a property is a bundle of embedded characteristics, this study postulates that having an ecoroof should increase the real sale price of a condominium. Using a log-linear model and street network distance measurements, we find that ecoroofs increase a condo’s sale price by an estimated 5.5%, or for a condominium unit with mean sale price of $325,197 (in December 2010 dollars), building an ecoroof would generate an increase in its sale price equal to $17,058. However, our model did not include explanatory variables for floor number or quality of view. As such, our estimate likely suffers from omitted variable bias since ecoroofs are correlated with variables we could not include such as LEED certification and other eco-friendly building features. This study also approximates the effects of the vacancy rate in the condo unit’s Census tract, whether the unit is owner-occupied, and the 2007/2008 financial crisis and housing bubble on condo real sale prices.
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Bibliographical Information:

Advisor:Noelwah Netusil

School:Reed College

School Location:USA - Oregon

Source Type:Other

Keywords:hedonic, economics, ecoroofs, ecoroof, green roof, green roofs, portland, condos, financial crisis


Date of Publication:05/15/2012

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