Are local retail services an amenity or a nuisance?

The article examines how local retail services in New York City are valued as either nuisances or amenities and how this valuation is reflected in residential property prices. Using detailed data on property sales and retail establishments from 2002 to 2010, the study finds that retail services frequently consumed and experiential, especially in mixed-use neighborhoods, are positively capitalized into housing prices across various property types, including single-family homes, condos/co-ops, and multi-family rentals. Conversely, proximity to chain stores and certain retail categories like food and beverage establishments often correlates with lower property values, indicating potential nuisance effects. Instrumental variable analyses addressing endogeneity reinforce these findings, showing stronger positive price effects for localized retail in mixed-use areas, with significant implications for urban planning and post-pandemic retail recovery strategies.