Disamenity Influences of Edge Cities on Exurban Land Values: A Theory with Empirical Evidence and Policy Implications

Abstract

A theory is posed with some empirical support on how the American exurban land market behaves near edge cities. The exurban land market exists beyond the built-up urban area within commuting range of urban employment and service opportunities. It responds differently to proximity to downtown, edge cities and the boundary of urban development. Three relationships between the value of exurban land and these landscape features are theorised and empirically supported. First, as exurban households are dependent upon dispersed employment opportunities and rely on the urban area for many services, the value of residential land falls with respect to distance from the boundary of urban development. Secondly, since exurban households view edge cities as sources of congestion, pollution, noise and other factors associated with perceived ills of suburbia, the value of exurban land rises with respect to distance from edge cities. Thirdly, since downtowns are the dominant centre of reference for many metropolitan regions, exurban land values fall with respect to distance from downtowns. Taken together, exurban land values fall with respect to distance from the boundary of urban development but, because of the disamenity influences of edge cities, at a flatter slope than suggested by monocentric land value theory. The effect of edge cities may be to push the urban field farther out than would be expected without this influence.