The college town of State College, PA, is home to The Pennsylvania State University (PSU) and its many facilities. Our research interest was in understanding the influence of the newly developed Arboretum at Penn State (APSU) on nearby housing values in State College over time. Current sales transaction data were gathered and a pooled crosssectional regression analysis approach utilized. Contrary to the literature, our findings suggested proximity to the APSU as well as three other nearby open spaces had no significant influence on the value of homes nearest it. Further, proximity to PSU's main campus was negatively associated with housing values. Neither of these patterns varied over time. To further explore these results, the study area was expanded beyond the neighborhoods most proximate to the APSU to the balance of the borough. These results replicated the earlier findings, confirming that living close to PSU's campus was negatively associated with housing values community-wide. Practically, these findings disconfirm the common assumption that the State College market places a premium on proximity to the town's major employment center (PSU campus) and a significant landmark (APSU). The findings suggest that housing markets in similar college towns would likely not reflect typical residential areas and may require alternative evaluation considerations that accounts for regional housing and land cover trends. Highlights We modeled the influences of land use and sociodemographic factors on residential property value in a college town. Unexpectedly, proximity to open space and a community landmark (an arboretum) do not significantly influence residential value. Also unexpectedly, proximity to the college campus decreases residential value. The results of the model are consistent at a second expanded (borough-wide) study area. These findings are contrary to urban real estate evaluation literature and suggest that college towns, especially in rural areas, require a unique approach.
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