The Effect of the Santa Cruz River Riparian Corridor on Single Family Home Prices Using the Hedonic Pricing Method

This thesis uses the hedonic pricing method to estimate the effect of location within and proximity to the Santa Cruz River riparian corridor on sales prices of single family residences in Rio Rico, Arizona. The riparian area is maintained by the instream flow of treated wastewater. A von Liebig-type econometric specification of distance variables performs better than a traditional semi-log specification. Regression estimates suggest that beyond 1.1 miles, distance from riparian vegetation did not affect home values. Homes within 1.1 miles of riparian vegetation, however, received an average price premium of 3.1% with premiums ranging as high as 5.8%.

Kimberly_Bourne_Masters_Thesis.pdf (1.71 MB)

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