In the 21st century, trees and gardens are in vogue.
They fight climate change, provide sustainable locally-grown food options, make neighborhoods more beautiful, and facilitate applied agricultural education to children and adults in urban and suburban settings.
But what are the impacts on housing markets and urban economics?
Desen Lin, an assistant professor of finance at Cal State Fullerton’s College of Business and Economics, is the author of a 2024 peer-reviewed research paper, “From Vacancy to Verdancy? The Impact of Land Options on the Timing of Vacant Land Investment,” examining the impact of “greening” programs designed to bring more plant life and vegetation to communities on real estate investments.
His study was published in the journal Real Estate Economics. It is the second of Lin’s studies on the topic, both appearing in this prestigious journal.
Lin shared with us the insights and results of his study.
Your paper looks at how greening programs can increase the value of vacant land and thus reduce urban decay and help stimulate a local economy. What motivated you to undertake the study?
I started the project when I was a Ph.D. student at the University of Pennsylvania. The neighborhood I lived in for six years in Philadelphia consists of a mix of row houses and vacant lots, with a few turned into community gardens and plotlands. I saw how vacant lot greening can make a change, bringing amenities such as green space and visual improvements to the local residents.
Later, I examined the citywide greening program called LandCare administered by the Pennsylvania Horticultural Society (PHS) and quantified the amenity effect of vacant lot greening with my co-authors in all neighborhoods of Philadelphia, a post-industrial city troubled by land vacancy and community divestment.
How do you feel your research will impact the real estate profession?
Neighborhoods in cities such as Philadelphia, Baltimore and Detroit receive less attention from real estate investors and developers, because slow economic growth and out-migration of population and industries make real estate projects there less profitable.
This study highlights how community-based programs can create amenities and increase the value of real estate investment opportunities. In particular, the timing of vacant lot investment, measured by the time length from the entry to the exit of land’s vacancy status, is substantially reduced to reflect a higher investment value, if zoning on a vacant lot is relaxed to allow for development of a garden.
What is the impact of your research on communities?
The LandCare Program has proved to be a success over the last two decades. More than a cost-effective land option, allowing for the development of a garden gets a vacant lot out of vacancy and help mitigate socioeconomic issues such as trash dumping, health concerns and crimes. More importantly, it reserves the redevelopment option of being converted into residentials or commercials when the next opportunity arrives.
But there are new challenges ahead. One hurdle is to find a sustainable public finance model to support the continuation of the program. In addition, putting forward zoning reforms to create option values for vacant lots could be challenging as well.
With the support from federal and local governments through philanthropic donations, community block grants and zoning reforms by relaxing land use options, I think non-profit organizations and private investors can play a vital role to restore community values in declining neighborhoods.
In just over a year of professorship at Cal State Fullerton, you are already a leader in research. Tell us about some of your other studies?
I have been working on studies of neighborhood sufficiency to understand why some neighborhoods are more valued than others by residents.
Another thread of research is to understand the living arrangement of young adults. I recently looked at housing for college students and the role of housing affordability in the rental markets near universities.
The faculty of Cal State Fullerton’s College of Business and Economics are leaders in research and thought leadership. Read more of our articles on our professors’ research.
