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Gentrification and Transit in Northwest Chicago

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  • Lin, Jeffrey

Abstract

LeRoy and Sonstelie (1983) propose that the presence of transit, in combination with declining automobile costs, leads to the gentrification of inner-city, transit-served neighborhoods. This paper attempts to empirically demonstrate whether the existence of transit spurred phenomena consistent with gentrification, utilizing data from northwest Chicago between 1975 and 1991. Using changes in residential property values as an indicator of gentrification, evidence is found that properties closest to transit stations increased in value much quicker than those farther away, especially in the period 1985-1991. Properties adjacent to transit stations had a 20% higher increase in value compared with those located a half-mile away, supporting the hypothesis that transit access was a spur to gentrification. The data also supports the notion that gentrification has spread like a “wave" over time, moving away from the lakefront and downtown.
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Suggested Citation

  • Lin, Jeffrey, 2002. "Gentrification and Transit in Northwest Chicago," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 41(4).
    • Handle: RePEc:ags:ndjtrf:317635
    DOI: 10.22004/ag.econ.317635
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    References listed on IDEAS

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    1. Wheaton, William C, 1977. "Income and Urban Residence: An Analysis of Consumer Demand for Location," American Economic Review, American Economic Association, vol. 67(4), pages 620-631, September.
    2. LeRoy, Stephen F. & Sonstelie, Jon, 1983. "Paradise lost and regained: Transportation innovation, income, and residential location," Journal of Urban Economics, Elsevier, vol. 13(1), pages 67-89, January.
    3. McDonald, John F. & Osuji, Clifford I., 1995. "The effect of anticipated transportation improvement on residential land values," Regional Science and Urban Economics, Elsevier, vol. 25(3), pages 261-278, June.
    4. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
    5. Gin, Alan & Sonstelie, Jon, 1992. "The streetcar and residential location in nineteenth century Philadelphia," Journal of Urban Economics, Elsevier, vol. 32(1), pages 92-107, July.
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    Cited by:

    1. Jenny Schuetz, 2015. "Do rail transit stations encourage neighbourhood retail activity?," Urban Studies, Urban Studies Journal Limited, vol. 52(14), pages 2699-2723, November.
    2. David Orta, 2021. "“Mexicans Built This Neighborhood!” Gentrification, Organizations, and the Role of Place-Based Identity in Latinx Chicago," Social Sciences, MDPI, vol. 10(8), pages 1-16, August.
    3. Genevieve Giuliano & Jenny Schuetz & Eun Jin Shin, 2016. "Is Los Angeles Becoming Transit Oriented?," Finance and Economics Discussion Series 2016-4, Board of Governors of the Federal Reserve System (U.S.).
    4. Pierre Filion & Anna Kramer & Gary Sands, 2016. "Recentralization as an Alternative to Urban Dispersion: Transformative Planning in a Neoliberal Societal Context," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(3), pages 658-678, May.
    5. Viguie, V. & Hallegatte, S., 2014. "Urban infrastructure investment and rent-capture potentials," Policy Research Working Paper Series 7067, The World Bank.
    6. Kyle Fee & Daniel Hartley, 2012. "The relationship between city center density and urban growth or decline," Working Papers (Old Series) 1213, Federal Reserve Bank of Cleveland.
    7. Jenny Schuetz & Genevieve Giuliano & Eun Jin Shin, 2018. "Does zoning help or hinder transit-oriented (re)development?," Urban Studies, Urban Studies Journal Limited, vol. 55(8), pages 1672-1689, June.
    8. Martin Danyluk & David Ley, 2007. "Modalities of the New Middle Class: Ideology and Behaviour in the Journey to Work from Gentrified Neighbourhoods in Canada," Urban Studies, Urban Studies Journal Limited, vol. 44(11), pages 2195-2210, October.
    9. Annelise Grube-Cavers & Zachary Patterson, 2015. "Urban rapid rail transit and gentrification in Canadian urban centres: A survival analysis approach," Urban Studies, Urban Studies Journal Limited, vol. 52(1), pages 178-194, January.
    10. Wang, Yiming & Feng, Suwei & Deng, Zhongwei & Cheng, Shuangyu, 2016. "Transit premium and rent segmentation: A spatial quantile hedonic analysis of Shanghai Metro," Transport Policy, Elsevier, vol. 51(C), pages 61-69.
    11. Konrad Miciukiewicz & Geoff Vigar, 2012. "Mobility and Social Cohesion in the Splintered City: Challenging Technocentric Transport Research and Policy-making Practices," Urban Studies, Urban Studies Journal Limited, vol. 49(9), pages 1941-1957, July.
    12. Jyothi Chava & Peter Newman, 2016. "Stakeholder Deliberation on Developing Affordable Housing Strategies: Towards Inclusive and Sustainable Transit-Oriented Developments," Sustainability, MDPI, vol. 8(10), pages 1-21, October.
    13. Jackson, Sara L. & Buckman, Joshua, 2020. "Light rail development with or without gentrification?: Neighborhood perspectives on changing sense of place in Denver, Colorado," Journal of Transport Geography, Elsevier, vol. 84(C).
    14. Debby F. Mir & Adolfo E. Sanchez, 2009. "Impact of gentrification on environmental pressure in service micro‐enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 18(7), pages 417-431, November.
    15. Jackelyn Hwang & Jeffrey Lin, 2016. "What Have We Learned About the Causes of Recent Gentrification?," Working Papers 16-20, Federal Reserve Bank of Philadelphia.
    16. Dong, Hongwei, 2017. "Rail-transit-induced gentrification and the affordability paradox of TOD," Journal of Transport Geography, Elsevier, vol. 63(C), pages 1-10.
    17. Lin, Jen-Jia & Yang, Shu-Han, 2019. "Proximity to metro stations and commercial gentrification," Transport Policy, Elsevier, vol. 77(C), pages 79-89.
    18. Lin, Jen-Jia & Xie, Ze-Xing, 2020. "The associations of newly launched high-speed rail stations with industrial gentrification," Journal of Transport Geography, Elsevier, vol. 83(C).
    19. Cervero, Robert, 2006. "Effects of Light and Commuter Rail Transit on Land Prices: Experiences in San Diego County," University of California Transportation Center, Working Papers qt75n1b5xc, University of California Transportation Center.
    20. Atuesta, Laura H. & Hewings, Geoffrey J.D., 2019. "Housing appreciation patterns in low-income neighborhoods: Exploring gentrification in Chicago," Journal of Housing Economics, Elsevier, vol. 44(C), pages 35-47.
    21. Lascano Kežić, Marcelo E. & Durango-Cohen, Pablo Luis, 2018. "New ridership for old rail: An analysis of changes in the utilization of Chicago's urban rail system, 1990–2008," Research in Transportation Economics, Elsevier, vol. 71(C), pages 17-26.
    22. Cervero, Robert, 2004. "Effects of Light and Commuter Rail Transit on Land Prices: Experiences in San Diego County," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 43(1).

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    More about this item

    Keywords

    Public Economics;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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