IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v76y2019icp212-220.html
   My bibliography  Save this article

Light rail transit and housing markets in Charlotte-Mecklenburg County, North Carolina: Announcement and operations effects using quasi-experimental methods

Author

Listed:
  • Ke, Yue
  • Gkritza, Konstantina

Abstract

As planners and engineers in large cities around the United States continue to seek solutions to transportation-related problems such as congestion, greenhouse gas emissions, and safe and efficient access to goods and services, light rail transit (LRT) systems have become an increasingly popular option. While LRT has the potential to address these issues, it also has the potential to create negative externalities. This study examines the effects that LRT has had on the single-family residence housing market in Charlotte-Mecklenburg, North Carolina, in both the announcement and operations phases. Using spatially explicit quasi-experimental econometric models, we found that the announcement of the LRT led to increases in price per square feet for properties as distance to LRT station decreases while the price per square foot of properties decreases as distance to LRT station decreases after the system began operations. These results indicate that while land speculation may have resulted from the announcement of the LRT system, homeowners living closest to the stations during operations may have viewed the LRT stations more as a nuisance than a benefit.

Suggested Citation

  • Ke, Yue & Gkritza, Konstantina, 2019. "Light rail transit and housing markets in Charlotte-Mecklenburg County, North Carolina: Announcement and operations effects using quasi-experimental methods," Journal of Transport Geography, Elsevier, vol. 76(C), pages 212-220.
    • Handle: RePEc:eee:jotrge:v:76:y:2019:i:c:p:212-220
    DOI: 10.1016/j.jtrangeo.2019.03.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096669231830228X
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2019.03.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Small, K.A. & Kazimi, C., 1994. "On the Costs of Air Pollution from Motor Vehicules," Papers 94-95-3, California Irvine - School of Social Sciences.
    2. Ng, Chen Feng, 2008. "Commuting distances in a household location choice model with amenities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 116-129, January.
    3. Bae, Chang-Hee Christine & Jun, Myung-Jin & Park, Hyeon, 2003. "The impact of Seoul's subway Line 5 on residential property values," Transport Policy, Elsevier, vol. 10(2), pages 85-94, April.
    4. Welch, Timothy F. & Gehrke, Steven R. & Wang, Fangru, 2016. "Long-term impact of network access to bike facilities and public transit stations on housing sales prices in Portland, Oregon," Journal of Transport Geography, Elsevier, vol. 54(C), pages 264-272.
    5. 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.
    6. Daniel Baldwin Hess & Tangerine Maria Almeida, 2007. "Impact of Proximity to Light Rail Rapid Transit on Station-area Property Values in Buffalo, New York," Urban Studies, Urban Studies Journal Limited, vol. 44(5-6), pages 1041-1068, May.
    7. Baum-Snow, Nathaniel & Kahn, Matthew E., 2000. "The effects of new public projects to expand urban rail transit," Journal of Public Economics, Elsevier, vol. 77(2), pages 241-263, August.
    8. Bardaka, Eleni & Delgado, Michael S. & Florax, Raymond J.G.M., 2018. "Causal identification of transit-induced gentrification and spatial spillover effects: The case of the Denver light rail," Journal of Transport Geography, Elsevier, vol. 71(C), pages 15-31.
    9. Shanjun Li & Jun Yang & Ping Qin & Shun Chonabayashi, 2016. "Wheels Of Fortune: Subway Expansion And Property Values In Beijing," Journal of Regional Science, Wiley Blackwell, vol. 56(5), pages 792-813, November.
    10. Seo, Kihwan & Golub, Aaron & Kuby, Michael, 2014. "Combined impacts of highways and light rail transit on residential property values: a spatial hedonic price model for Phoenix, Arizona," Journal of Transport Geography, Elsevier, vol. 41(C), pages 53-62.
    11. D. Knowles, Richard & Ferbrache, Fiona, 2016. "Evaluation of wider economic impacts of light rail investment on cities," Journal of Transport Geography, Elsevier, vol. 54(C), pages 430-439.
    12. Dong, Hongwei, 2017. "Rail-transit-induced gentrification and the affordability paradox of TOD," Journal of Transport Geography, Elsevier, vol. 63(C), pages 1-10.
    13. Pagliara, Francesca & Papa, Enrica, 2011. "Urban rail systems investments: an analysis of the impacts on property values and residents’ location," Journal of Transport Geography, Elsevier, vol. 19(2), pages 200-211.
    14. Kern, Clifford R., 1981. "Upper-income renaissance in the city: Its sources and implications for the city's future," Journal of Urban Economics, Elsevier, vol. 9(1), pages 106-124, January.
    15. Camins-Esakov, Jacob & Vandegrift, Donald, 2018. "Impact of a light rail extension on residential property values," Research in Transportation Economics, Elsevier, vol. 67(C), pages 11-18.
    16. Yan, Sisi & Delmelle, Eric & Duncan, Michael, 2012. "The impact of a new light rail system on single-family property values in Charlotte, North Carolina," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 5(2), pages 60-67.
    17. Billings, Stephen B., 2011. "Estimating the value of a new transit option," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 525-536.
    18. Carol Atkinson-Palombo, 2010. "Comparing the Capitalisation Benefits of Light-rail Transit and Overlay Zoning for Single-family Houses and Condos by Neighbourhood Type in Metropolitan Phoenix, Arizona," Urban Studies, Urban Studies Journal Limited, vol. 47(11), pages 2409-2426, October.
    19. Mulley, Corinne & Tsai, Chi-Hong (Patrick) & Ma, Liang, 2018. "Does residential property price benefit from light rail in Sydney?," Research in Transportation Economics, Elsevier, vol. 67(C), pages 3-10.
    20. Wenjie Wu & Guanpeng Dong & Bing Wang, 2015. "Does Planning Matter? Effects on Land Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 50(2), pages 242-269, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Jae Hong & Li, Xiangyu, 2021. "Building more housing near transit: A spatial analysis of residential densification dynamics," Transport Policy, Elsevier, vol. 114(C), pages 15-24.
    2. Rennert, Lindiwe, 2022. "A meta-analysis of the impact of rail stations on property values: Applying a transit planning lens," Transportation Research Part A: Policy and Practice, Elsevier, vol. 163(C), pages 165-180.
    3. Baker, Dwayne Marshall & Kim, Seunghoon, 2020. "What remains? The influence of light rail transit on discretionary income," Journal of Transport Geography, Elsevier, vol. 85(C).
    4. Schmidt, Adam & Bardaka, Eleni & Thill, Jean-Claude, 2022. "Causal, spatiotemporal impacts of transit investments: Exploring spatial heterogeneity from announcement through long-run operation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 151-169.
    5. Tan, Ronghui & He, Qingsong & Zhou, Kehao & Xie, Peng, 2019. "The effect of new metro stations on local land use and housing prices: The case of Wuhan, China," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    6. Helen XH Bao & Johan P Larsson & Vivien Wong, 2021. "Light at the end of the tunnel:The impacts of expected major transport improvements on residential property prices," Urban Studies, Urban Studies Journal Limited, vol. 58(14), pages 2971-2990, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julie Bulteau & Thierry Feuillet & Rémy Le Boennec, 2018. "Spatial Heterogeneity of Sustainable Transportation Offer Values: A Comparative Analysis of Nantes Urban and Periurban/Rural Areas (France)," Post-Print halshs-01706911, HAL.
    2. AlQuhtani, Saad & Anjomani, Ardeshir, 2019. "Do rail transit stations affect housing value changes? The Dallas Fort-Worth metropolitan area case and implications," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    3. Nilsson, Isabelle & Delmelle, Elizabeth, 2018. "Transit investments and neighborhood change: On the likelihood of change," Journal of Transport Geography, Elsevier, vol. 66(C), pages 167-179.
    4. Schmidt, Adam & Bardaka, Eleni & Thill, Jean-Claude, 2022. "Causal, spatiotemporal impacts of transit investments: Exploring spatial heterogeneity from announcement through long-run operation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 151-169.
    5. Bardaka, Eleni & Delgado, Michael S. & Florax, Raymond J.G.M., 2018. "Causal identification of transit-induced gentrification and spatial spillover effects: The case of the Denver light rail," Journal of Transport Geography, Elsevier, vol. 71(C), pages 15-31.
    6. Aliyu Ahmad Aliyu & Olurotimi Adebowale Kemiki & Muhammad Umar Bello, 2018. "Transportation Accessibility Benefit and the Dynamic Pattern of Real Estate Prices: Emerging Literature," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(11), pages 1001-1016, November.
    7. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    8. Diao, Mi & Leonard, Delon & Sing, Tien Foo, 2017. "Spatial-difference-in-differences models for impact of new mass rapid transit line on private housing values," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 64-77.
    9. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    10. Aliyu Ahmad Aliyu & Olurotimi Adebowale Kemiki & Muhammad Umar Bello, 2018. "Analysis of Current Empirical Studies on Transport Value-Added Effect and Proximate Housing Price Capture," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(12), pages 1001-1020, December.
    11. Rhiannon Jerch & Panle Jia Barwick & Shanjun Li & Jing Wu, 2020. "Road Rationing Policies and Housing Markets," DETU Working Papers 2004, Department of Economics, Temple University.
    12. Haizhen Wen & Zaiyuan Gui & Chuanhao Tian & Yue Xiao & Li Fang, 2018. "Subway Opening, Traffic Accessibility, and Housing Prices: A Quantile Hedonic Analysis in Hangzhou, China," Sustainability, MDPI, vol. 10(7), pages 1-23, June.
    13. Zachary T. Keeler & Heather M. Stephens, 2023. "The capitalization of metro rail access in urban housing markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(3), pages 686-720, May.
    14. Pasha, Obed & Wyczalkowski, Chris & Sohrabian, Dro & Lendel, Iryna, 2020. "Transit effects on poverty, employment, and rent in Cuyahoga County, Ohio," Transport Policy, Elsevier, vol. 88(C), pages 33-41.
    15. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease vs. noise: Long-run changes in the value of transport (dis)amenities," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    16. Pearson, Jonathan & Muldoon-Smith, Kevin & Liu, Henry & Robson, Simon, 2022. "How does the extension of existing transport infrastructure affect land value? A case study of the Tyne and Wear Light Transit Metro system," Land Use Policy, Elsevier, vol. 112(C).
    17. Tornabene, Sara & Nilsson, Isabelle, 2021. "Rail transit investments and economic development: Challenges for small businesses," Journal of Transport Geography, Elsevier, vol. 94(C).
    18. Seungwoo Chin & Matthew E. Kahn & Hyungsik Roger Moon, 2020. "Estimating the Gains from New Rail Transit Investment: A Machine Learning Tree Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(3), pages 886-914, September.
    19. Yuxiang Wang & Xueli Liu & Feng Wang, 2018. "Economic Impact of the High-Speed Railway on Housing Prices in China," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    20. Liang, Cong & Huang, Yaoxuan & Yip, Tsz Leung & Li, Victor Jing, 2022. "Does rail transit development gentrify neighborhoods? Evidence from Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 354-372.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:76:y:2019:i:c:p:212-220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.