Viewshed analyses to measure the impact of lake views on urban residential properties.(Report)

ABSTRACT

Views of two man-made lakes from nearby single-family homes in Omaha, Nebraska, were determined through multiple listing service (MLS) and geographic information system (GIS) frontage classifications, and alternative GIS-based analyses. The MLS underestimated the number of views by 79%. The GIS frontage classifications overestimated view numbers by 42%, while GIS viewshed analyses based on elevation data overestimated views by only 0.5%. Hedonic modeling determined that lake views increase home values by between 7.5% and 8.3%, which is substantial considering that the lakes were designed primarily for flood control and storm water management rather than recreational use.

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The positive impact of water views on single-family housing prices is well supported in the literature from the early 1970s to present. However, to date, not all types of water views have been quantified. For example, the literature has yet to value views of small to midsized man-made lakes (reservoirs) in urban areas that are designed for flood control and storm water management, and have limited recreation potential.

In addition, the task of determining whether individual homes have water views is often problematic for appraisers and tax assessors, since most multiple listing services (MLSs) and other real estate transaction databases either ignore view classifications or report them inconsistently. Alternatively, the use of plat (housing or lot) maps or even geographic information systems (GIS) to classify homes directly facing lakes (i.e., frontage) may potentially overestimate the number of actual views if elevation levels and other obstructions are not accounted for.