The impact of temporary uses on property prices: the example of food trucks

Julia Freybote, Yiping Fang and Matthew Gebhardt

Journal of Property Research, 2017, vol. 34, issue 1, 19-35

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.

Date: 2017
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DOI: 10.1080/09599916.2017.1288163

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