PRICING RESIDENTIAL AMENITIES - THE VALUE OF A VIEW

This study provides estimates of the value of the view amenity in sing le-family residential real estate markets. A focus on Bellingham, Wash ington, a city with a variety of views, including ocean, lake, and mou ntain, allows for differentiation of the view amenity by both type and quality. Results from a hedonic model estimated for several recent ye ars suggest that depending on the particular view, willingness to pay for this amenity is quite high. The highest-quality ocean views are fo und to increase the market price of an otherwise comparable home by al most 60%; the lowest-quality ocean views are found to add about 8%. Fo r ocean views of all quality levels, the value of a view is found to v ary inversely with distance from the water.