June 1, 2001 UNT Inhouse publications: UNT study: Back alleys lower home values

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UNT study: Back alleys lower home values

A recent UNT study found that potential homeowners in Denton are avoiding houses with back alleyways because of pollution, crime and hassle.

According to Randall S. Guttery, associate professor of finance and real estate, these factors are lowering home values throughout the Metroplex.

Guttery sampled 1,672 sales of homes both with and without back alleys from a listing by the Metroplex Regional Association of Realtors within Denton from July 1989 to 1995. It also included real estate agents' comments about their sales.

Guttery found that homes with back alleyways sold for 5.5 percent less than otherwise identical houses with traditional front-entry driveways. Often homeowners were unhappy with losing part of their back yard to an alley, which they believe has the potential to attract criminal activity.

"Literally, women are afraid to take out the trash because they fear either being attacked in a dark alley or having someone entering their home from the back door," he says.

Guttery also says homeowners tend to shun responsibility for maintaining back alleys. Because most alleys are a part of the private property, city governments aren't responsible for maintaining them. Often these alleys are cluttered with trash.

Guttery says homeowners living in communities with alleyway systems also tend to park vehicles in front of their houses, despite having garages in the rear, creating traffic congestion and a danger to children darting out between cars.

Guttery is hopeful his study will encourage developers to reconsider using rear-entry alleys.