Designing neighborhoods with rear-entry alleyways reduces the selling price of homes by more than 5% in Denton County, according to the real estate experts at the University of North Texas in Denton.

Randall Guttery, assistant professor of real estate, said he started wondering about effects of the back alleyway design after a series of crimes in the Dallas area in which residents were abducted or attacked in the alleys behind their homes.

Aside from crime concerns, other factors involved with back alleyway designs having a negative impact on price include:

• reduced sizes of backyards;
• inconvenience;
• garbage and debris clutter;
• street congestion caused by guests or residents who park out front.

Guttery looked at 1,672 home sales in Denton County from July 1989 to December 1995. Only 8% of them were on alleyway designs.

Using a standard regression model, Guttery found that houses with rear-entry alleyways on average sold for 5.5% less compared to similar houses with front-entry driveways.

Published: April 5, 1999

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