SPATIALLY-VARYING EFFECTS OF REZONING ON HOUSING PRICE

A hedonic price equation is estimated at the parcel level to capture the spatially-varying effects of rezoning on housing prices using a geographically weighted regression - spatial autoregressive error model (GWR-SEM). The empirical results highlight a number of points. Firstly, the positive amenities from rezoning to office use act as a buffer and transition the zones between single family housing to commercial zones near downtown areas may be applicable to approving the same kind of rezoning in other areas. Secondly, when approving rezoning from agriculture to residential or commercial use, it may be necessary to anticipate the positive amenities from rezoning in less well-off neighborhoods and the negative amenities from rezoning in well-off neighborhoods. Thirdly, the positive amenities from well-designed open space preservation districts may encourage county planners to consider similar types of projects in the future.