Predicting Appraised Value of Parcels of Harris County, Texas Using LEED Criteria for Public Transportation Access

Abstract

The objective of this study is to determine if the appraised unit value ($/sf) of unimproved land parcels in Houston, Texas could be predicted by a regression equation containing a group of independent variables that represent LEED transportation access criteria and the area of a land parcel. The independent variables, number of bus stops, number of rail stops and parcel area, were all found to contribute significantly to the independent variable, appraised unit value of a parcel. The observational unit was properties in Houston, Texas that were unimproved (had zero improvement value). Findings suggest that the acceptance criteria for the LEED green building rating system regarding public transportation access have a significant influence on the appraised value in dollars per square foot of the subject properties. Based on the sample median lot size of 5,300 square feet, the predicted lot value increases dramatically in proportion to the number of qualifying light rail stations and decreases marginally in proportion to the number of qualifying bus stops. Since the regression model and each independent variable were all significant at p<0.05 and the adjusted R-square was near 0.50, the study objective was deemed to have been answered in the affirmative.