The impact of temporary uses on property prices: the example of food trucks. Issue 1 (2nd January 2017)

• Record Type: Journal Article
• Authors: Freybote, Julia; Fang, Yiping; Gebhardt, Matthew
• Is Part Of: Journal of property research. Volume 34:Issue 1(2017)
• Page Start: 19
• Page End: 35
• Publication Date: 2017-01-02
• Subjects: Temporary land uses -- food trucks -- residential real estate -- spatial regression -- hedonic pricing model; Real estate business -- Great Britain -- Periodicals; Land use -- Great Britain -- Periodicals; 333.3
• DOI: 10.1080/09599916.2017.1288163
• Languages: English
• ISSNs: 0959-9916

Abstract

Abstract: Food trucks represent a temporary use of vacant or underutilised land. They have been assumed to increase the livability, vibrancy and attractiveness of a neighbourhood. However, no previous study has investigated whether this effect is reflected in property prices within the surrounding neighbourhood. We investigate the impact of a food truck pod on the values of single-family homes nearby. Using a quasi-experimental design, transaction data from Portland, Oregon and a difference-in-difference specification of a spatial regression model, we find that food trucks actually represent a negative externality, and that proximity of a home to food trucks is penalised by homebuyers. The closer a home is to the food trucks, the lower is the sales price. Explanations for this effect include increased parking shortages and trash issues in a neighbourhood due to food truck visitors.