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There has been considerable debate over "New Urbanism" as a design strategy for adapting physical space to human needs. Among the interesting questions is whether people are willing to pay a premium to be able to live in areas characterized by New Urbanism design principles. If so, this willingness should be reflected in housing values. We test the hypothesis that urban design, specifically the design attributes associated with New Urbanism, are reflected in housing prices, using a data set for Haifa, Israel. House sales from 1988 through 1996 are analyzed for three neighborhoods in which there are similar socioeconomic compositions, public services, schools, property taxes, and other amenities. One of the neighborhoods has many characteristics of New Urbanism design, while the other two are more traditional urban or suburban developments. Hedonic regression analysis is used to control structure-specific characteristics, and an analysis of the regression values across neighborhoods shows a statistically significant price premium in the New Urbanism neighborhood. The evidence suggests that persons are willing to pay for living in a New Urbanism neighborhood, other things held equal.

To date, research into the subjective aspects of high density has focused mainly on the negative consequences of overcrowding. This study, in contrast, outlines some of the positive aspects of high density in neighborhoods, exploring the physical-spatial environment of two neighborhoods in the city of Haifa, Israel. It was found that while the relatively high residential density was similar in both neighborhoods (40 housing units per acre), this was more positively evaluated in one neighborhood as compared to the other. This can be attributed to some specific environmental and planning features. In particular, where physical planning enabled the potential advantages of high density to be realized, this was positively perceived and evaluated by local residents. Such advantages mainly comprised accessibility to a variety of services, more frequent public transportation, and access to open spaces within walking distance. Particularly advantageous were the increased opportunities for social gathering. At the same time, however, high density did not foster social relationships at the neighborhood level. The study further identified the gender and age groups that benefited most from the high density. Thus, women evaluated high density more positively than men. Young families with children and senior citizens (over 65) were also more likely to benefit, and to evaluate the high density environment more positively than other social groups.