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1,2 <br />Houses on more sloped lots are worth less. Elevation in and of itself does not influence house <br />price, but elevation relative to the surrounding terrain does. Houses that sit above the <br />surrounding terrain are worth more than those i at sit below the surrounding terrain. Public <br />water service increases house value, but public sewer service does not. The high correlation <br />between these two features made it more difficult to distinguish their individual effects. House <br />prices did not increase as fast as inflation during the study period (real prices declined over <br />time). Shorter commuting distance to Allentown and Philadelphia are associated with higher <br />house prices, but shorter distance to Reading was not seen as a positive amenity. Zoning has <br />little impact on house price. <br />Of particular interest. are the results related to lot size. The relationship between house price and <br />lot size is shown in Figure 1. The price of a house built on a 0.1 acre lot is normalized to equal <br />1.0. Figure 1 shows how the house price will increase as the lot size increases. . So, for example, <br />a house built on a 1 acre lot will cost 32% more than the same house built on a 0.1 - acre lot. The <br />marginal impact of additional lot size decreases, however, so that a house built on a 5 acre lot is <br />worth only a little bit more than a house built on a 3 acre lot. This relationship can help inform <br />developers and planners when considering density of a new residential development. <br />1.6 <br />0 1.5 <br />ai <br />v <br />�a <br />c 1.4 <br />a ° <br />ul y <br />3 3 <br />= t 1.3 <br />w a <br />R N <br />W V 1.2 <br />a <br />ro <br />a <br />E <br />t°i 1.1 <br />0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 <br />Lot Size (acres) <br />Figure 1. Relative house price as a functiDn of lot size. <br />Regression Results - Surrounding Land Use <br />Table 'l summarizes the impact that neighboring land use has on house price. All impacts are <br />measured relative to industrial use. In other words, for every acre of land within 400 meters of <br />the house that is in forested, privately -owned open space, the house's price is 0.276% higher than <br />it would have been if that acre of land had been in industrial use instead. The significance level <br />states how confident we can be that the number listed is actually different from zero, and not <br />E <br />