Correlation between Median Household Income and LEED Sustainable Site Criteria for Public Transportation Access and a Regression Model Predicting Appraised Unit Value of Unimproved Parcels in Houston, Texas

The Leadership in Energy and Environmental Design (LEED) Green Building Rating System provides third-party verification for environmentally sustainable construction. LEED certified buildings often provide healthier work and living environments, however, it does not provide any direct economic incentives to the owners and developers. An early research suggested that there was a significant correlation between appraised unit value of a parcel and LEED sustainable site criteria for public transportation access. Moreover, the regression model for predicting appraised unit value of a parcel suggested that the coefficient of Number of Light Rail Stations was positive, while the coefficient of Number of Bus Stops was negative. This result contradicted our original expectation that both number of bus stops and light rail stations could have a positive effect on the appraised unit value. Hence it becomes important to conduct further research to explain this phenomenon. In this research, Pearson correlation was examined to determine whether there is a significant correlation between median household income and the number of bus stops and light rail stations for a given parcel that meet LEED sustainable site criteria for public transportation access. After confirming no significant correlation exists, multiple regression analysis was applied to establish a regression model for predicting unit value of a given parcel using number of bus stops and light rail stations for a given parcel that meet LEED sustainable site criteria for public transportation access, median household income and parcel area as the independent variables. Result of Pearson correlation indicated that there was no significant correlation exists between median household income and the number of bus stops and light rail stations for a given parcel which met LEED sustainable site criteria for public transportation access. Findings of multiple regression analysis suggested that all independent variables were significant predictors for unit value of a parcel. Besides, this regression model had a higher adjusted R- square value than that of the model which was established by Bhagyashri Joshi. It means that this regression model could better predict appraised unit value of an unimproved parcel.