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Hedonic Value of Transit Accessibility: An Empirical Analysis in a Small Urban Area

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  • Cao, Xinyu
  • Hough, Jill A.

Abstract

Many programs of the SAFETEA-LU have pointed to improving transit services and individuals’ accessibility in small urban areas. Urban economic theory suggests that improving accessibility by investing in transportation has the potential to drive up bids for land. However, will the improved transit accessibility in small urban areas increase property values? A number of studies have investigated the impact of rail transit on home sales but produced mixed results. Further, few studies have explored how transit influences the lease rate of apartments. This question is more relevant because transit accessibility tends to have a greater impact on apartment dwellers than home owners. Using about 400 apartment dwellers in Fargo, North Dakota, this study developed a hedonic price model to determine implicit price of proximity to bus routes. We found a negative impact of bus transit on apartment rent after controlling for other factors, however. We speculated that in a small urban area, this negative relationship could be mainly attributable to spurious relationships from other causal factors, as well as nuisance effects of bus transit itself.

Suggested Citation

  • Cao, Xinyu & Hough, Jill A., 2008. "Hedonic Value of Transit Accessibility: An Empirical Analysis in a Small Urban Area," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(3).
    • Handle: RePEc:ags:ndjtrf:206969
    DOI: 10.22004/ag.econ.206969
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    References listed on IDEAS

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    1. Mackett, Roger L. & Edwards, Marion, 1998. "The impact of new urban public transport systems: will the expectations be met?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(4), pages 231-245, May.
    2. Loukaitou-Sideris, Anastasia & Liggett, Robert & Hiseki, Hiroyuki, 2002. "The Geography of Transit Crime: Documentation and Evaluation of Crime Incidence on and around the Green Line Stations in Los Angeles," University of California Transportation Center, Working Papers qt6631x3cc, University of California Transportation Center.
    3. John D. Benjamin & G. Stacy Sirmans, 1996. "Mass Transportation, Apartment Rent and Property Values," Journal of Real Estate Research, American Real Estate Society, vol. 12(1), pages 1-8.
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    1. Dubé, Jean & Andrianary, Eugénie & Assad-Déry, François & Poupart, Janie & Simard, Justine, 2018. "Exploring difference in value uplift resulting from new bus rapid transit routes within a medium size metropolitan area," Journal of Transport Geography, Elsevier, vol. 72(C), pages 258-269.
    2. Yang, Linchuan & Chau, K.W. & Wang, Xu, 2019. "Are low-end housing purchasers more willing to pay for access to basic public services? Evidence from China," Research in Transportation Economics, Elsevier, vol. 76(C).
    3. Qingchun Liu & Peixiong Zhao & Yan Xiao & Xin Zhou & Jun Yang, 2022. "Walking Accessibility to the Bus Stop: Does It Affect Residential Rents? The Case of Jinan, China," Land, MDPI, vol. 11(6), pages 1-17, June.
    4. Acton, Blake & Le, Huyen T.K. & Miller, Harvey J., 2022. "Impacts of bus rapid transit (BRT) on residential property values: A comparative analysis of 11 US BRT systems," Journal of Transport Geography, Elsevier, vol. 100(C).

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