Phragmites Removal Increases Property Values in Michigan’s Lower Grand River Watershed

Session: 51. - Coastal Resilience

Erik Nordman, Grand Valley State University, [email protected]
Paul Isely, Grand Valley State University, [email protected]
Shaun Howard, The Nature Conservancy, [email protected]
Richard Bowman, The Nature Conservancy, [email protected]

Abstract

The presence of Phragmites australis, an invasive wetland plant, negatively affects coastal property values. A property value model of Michigan’s lower Grand River was used to measure the relationship between distance to Phragmites and home sale prices. Home prices increased as distance to Phragmites increased at a rate of $3.90/meter. Removing Phragmites from a property so that the next closest Phragmites was 400 m away results in a property value increase of over $1,500. Removing all Phragmites within 400 m of any property results in a total property value impact of $837,000. This generates about $13,457-$15,121 in additional property taxes each year once the prices and taxes adjust to the plant’s removal. We estimated the cost of Phragmites removal at $687/ha. Removing the approximately 36 ha of Phragmites in the area would cost about $25,041. Future treatments would likely be less than that of the first year. The estimated cost of the first year of Phragmites removal is less than the estimated two years of annual property tax revenue increases. The results suggest that tax increment financing may be an effective tool for managing Phragmites.

1. Keyword
economic evaluation

2. Keyword
Phragmites australis

3. Keyword
Grand River