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Effects of transit-oriented development (TOD) on housing prices: A case study in Wuhan, China

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  • Li, Jianyi
  • Huang, Hao

Abstract

Rail transit is becoming significant to urban growth and sustainability in China since China is investing more than 2 trillion yuan in urban rail transit during the 13th Five-Year Plan (2016–2020). Transit-oriented development (TOD) emphasizes using built-environment factors such as mixed-use, density, and walkability, to maximize the benefits of improving transit accessibility. Although studies illustrate how transit-oriented built-environments amplify the rail transit impact on housing prices within the American context, little attention has been paid to Chinese cities. Using a case study of Wuhan City in China, this study shows that a higher transit proximity premium of housing prices is more likely to occur in the place with more mixed land uses. Policy implications on TOD planning and land value capture near transit station areas are derived.

Suggested Citation

  • Li, Jianyi & Huang, Hao, 2020. "Effects of transit-oriented development (TOD) on housing prices: A case study in Wuhan, China," Research in Transportation Economics, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:retrec:v:80:y:2020:i:c:s0739885920300020
    DOI: 10.1016/j.retrec.2020.100813
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    Cited by:

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    2. Li, Xinjian & Love, Peter E.D. & Luo, Hanbin & Fang, Weili, 2022. "A systemic model for implementing land value capture to support urban rail transit infrastructure projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 156(C), pages 90-112.
    3. Murakami, Jin & Villani, Caterina & Talamini, Gianni, 2021. "The capital value of pedestrianization in Asia's commercial cityscape: Evidence from office towers and retail streets," Transport Policy, Elsevier, vol. 107(C), pages 72-86.
    4. Champagne, Marie-Pier & Dubé, Jean, 2023. "The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review," Transport Policy, Elsevier, vol. 131(C), pages 139-155.
    5. Zhenyu Mei & Liang Kong & Wenchao Zheng, 2020. "TOD Parking Demand Models for New Urban Areas in China," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    6. Pengyu Ren & Yuanli Li & Kairui You, 2021. "Residents’ Demands for Urban Retail: Heterogeneity in Housing Structure Characteristics, Price Quantile, and Space," Land, MDPI, vol. 10(12), pages 1-17, December.
    7. Hao Huang & Jianyi Li, 2021. "The spatial variation of moderating effects of density and natural amenities on housing prices in Wuhan, China," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1778-1804, December.

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    More about this item

    Keywords

    Transit-oriented development; Rail transit; Housing price premium; Hedonic price model;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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