Pavement Condition and Residential Property Values: A Spatial Hedonic Price Model for Solano County, California

Kihwan Seo, Deborah Salon, Fraser Shilling, Michael Kuby

Research output: Contribution to journalArticlepeer-review

5 Scopus citations


Transportation agencies invest billions of dollars every year in resurfacing roadways, ostensibly to improve the travel experience. When locally funded, one justification for increased expenditure on the pavement surface is that it could increase property values. We evaluated this approach directly, using hedonic regression to estimate the relationship between pavement condition and residential property value in Solano County, California. We hypothesized that improving pavement condition would positively affect property values in two ways: directly as an indicator of neighborhood blight and indirectly through its effect on traffic conditions and noise. We estimated this relationship for the County as a whole and for each city within the County, controlling for spatial autocorrelation. The estimated relationship is small in magnitude and often not statistically significant. Although there are certainly reasons to improve pavement condition, our results suggest that increasing property value may not be one of them.

Original languageEnglish (US)
Pages (from-to)243-261
Number of pages19
JournalPublic Works Management and Policy
Issue number3
StatePublished - Jul 1 2018


  • hedonic model
  • pavement condition index
  • residential property value
  • spatial econometrics

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Sociology and Political Science
  • Public Administration


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