IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v155y2022icp354-372.html
   My bibliography  Save this article

Does rail transit development gentrify neighborhoods? Evidence from Hong Kong

Author

Listed:
  • Liang, Cong
  • Huang, Yaoxuan
  • Yip, Tsz Leung
  • Li, Victor Jing

Abstract

Transit-induced gentrification is a popular topic of research and a pressing concern worldwide. However, little attention is paid to the connection between rail transit development and the movement of low-income residents. To investigate this important issue, this paper studies the development of the Mass Transit Railway (MTR) in Hong Kong between 2001 and 2006, which added three new rail transit lines covering a total length of 65 km. By using census statistics at the district council constituency area (DCCA) level in a difference-in-differences approach, we find that MTR development in Hong Kong between 2002 and 2004 increased the number of advanced degree holders (Bachelor’s degree and above) by 10% in the New Territories and 7.81% in the new towns and reduced the number of low-income households by 5.85% in the New Territories and 7.53% in the new towns. To confirm that these socioeconomic changes were driven by internal migration, we further use household-level data from the 5% population censuses in 2001 and 2006 in a multinomial logistic regression. The results indicate that MTR development between 2002 and 2004 was likely to induce high-educated people to move into and low-income households to move out of MTR-served areas. The results show that the New Territories and the new towns in Hong Kong underwent gentrification between 2001 and 2006. We therefore suggest that the Hong Kong government negotiate with MTR Corporation to allocate resources to develop properties for low-income families.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transa:v:155:y:2022:i:c:p:354-372
    DOI: 10.1016/j.tra.2021.11.022
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856421003098
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tra.2021.11.022?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Naik, Nikhil & Kominers, Scott Duke & Raskar, Ramesh & Glaeser, Edward L. & Hidalgo, Cesar A., 2015. "Do People Shape Cities, or Do Cities Shape People? THe Co-evolution of Physical, Social and Economic Change in Five Major U.S. Cities," Working Paper Series 15-061, Harvard University, John F. Kennedy School of Government.
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    3. Casey Dawkins & Rolf Moeckel, 2016. "Transit-Induced Gentrification: Who Will Stay, and Who Will Go?," Housing Policy Debate, Taylor & Francis Journals, vol. 26(4-5), pages 801-818, September.
    4. Bardaka, Eleni & Delgado, Michael S. & Florax, Raymond J.G.M., 2019. "A spatial multiple treatment/multiple outcome difference-in-differences model with an application to urban rail infrastructure and gentrification," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 325-345.
    5. 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.
    6. He, Sylvia Y., 2020. "Regional impact of rail network accessibility on residential property price: Modelling spatial heterogeneous capitalisation effects in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 244-263.
    7. 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.
    8. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    9. Elizabeth Delmelle & Isabelle Nilsson, 2020. "New rail transit stations and the out-migration of low-income residents," Urban Studies, Urban Studies Journal Limited, vol. 57(1), pages 134-151, January.
    10. Grimes, Arthur & Young, Chris, 2013. "Spatial effects of urban rail upgrades," Journal of Transport Geography, Elsevier, vol. 30(C), pages 1-6.
    11. Dubé, Jean & Thériault, Marius & Des Rosiers, François, 2013. "Commuter rail accessibility and house values: The case of the Montreal South Shore, Canada, 1992–2009," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 49-66.
    12. Beatty, Timothy K.M. & Shimshack, Jay P., 2011. "School buses, diesel emissions, and respiratory health," Journal of Health Economics, Elsevier, vol. 30(5), pages 987-999.
    13. Elizabeth C. Delmelle & Isabelle Nilsson & Alexander Bryant, 2021. "Investigating Transit-Induced Displacement Using Eviction Data," Housing Policy Debate, Taylor & Francis Journals, vol. 31(2), pages 326-341, March.
    14. Chase Billingham & Barry Bluestone & Stephanie Pollack, 2010. "Maintaining diversity in America's transit-rich neighborhoods: tools for equitable neighborhood change," New England Community Developments, Federal Reserve Bank of Boston, pages 1-6.
    15. Dong, Hongwei, 2017. "Rail-transit-induced gentrification and the affordability paradox of TOD," Journal of Transport Geography, Elsevier, vol. 63(C), pages 1-10.
    16. Cohen, Jeffrey P. & Barr, Jason & Kim, Eon, 2021. "Storm surges, informational shocks, and the price of urban real estate: An application to the case of Hurricane Sandy," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    17. Zhengyi Zhou & Hong Chen & Lu Han & Anming Zhang, 2021. "The Effect of a Subway on House Prices: Evidence from Shanghai," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(S1), pages 199-234, March.
    18. Cohen, Jeffrey P. & Brown, Mike, 2017. "Does a new rail rapid transit line announcement affect various commercial property prices differently?," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 74-90.
    19. Liang, Cong & Hui, Eddie C.M. & Yip, Tsz Leung & Huang, Yaoxuan, 2020. "Private land use for public housing projects: The Influence of a Government Announcement on Housing Markets in Hong Kong," Land Use Policy, Elsevier, vol. 99(C).
    20. Heilmann, Kilian, 2018. "Transit access and neighborhood segregation. Evidence from the Dallas light rail system," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 237-250.
    21. Zhou, Zhengyi & Zhang, Anming, 2021. "High-speed rail and industrial developments: Evidence from house prices and city-level GDP in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 98-113.
    22. John D. Landis, 2016. "Tracking and Explaining Neighborhood Socioeconomic Change in U.S. Metropolitan Areas Between 1990 and 2010," Housing Policy Debate, Taylor & Francis Journals, vol. 26(1), pages 2-52, January.
    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. Liu, Chang & Bardaka, Eleni, 2023. "Transit-induced commercial gentrification: Causal inference through a difference-in-differences analysis of business microdata," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
    2. Shailesh Chandra & Ramavattula Thirumaleswara Naik & Jose Torres-Aguilera, 2023. "Does Living near Public Transport Equate to Food (In)Security in the United States?—Evidence from the 2020 National Health Interview Survey (NHIS)," Sustainability, MDPI, vol. 15(18), pages 1-17, September.
    3. Meng, Yangyang & Zhao, Xiaofei & Liu, Jianzhong & Qi, Qingjie & Zhou, Wei, 2023. "Data-driven complexity analysis of weighted Shenzhen Metro network based on urban massive mobility in the rush hours," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 610(C).
    4. Xinyu Zhuang & Li Zhang & Jie Lu, 2022. "Past—Present—Future: Urban Spatial Succession and Transition of Rail Transit Station Zones in Japan," IJERPH, MDPI, vol. 19(20), pages 1-35, October.

    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. Shadi O. Tehrani & Shuling J. Wu & Jennifer D. Roberts, 2019. "The Color of Health: Residential Segregation, Light Rail Transit Developments, and Gentrification in the United States," IJERPH, MDPI, vol. 16(19), pages 1-19, September.
    2. 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.
    3. Nilsson, Isabelle & Schuch, Johanna C. & Delmelle, Elizabeth C. & Canales, Kristine L., 2020. "Should I stay or should I go? A survey analysis of neighborhood change and residential mobility concerns around new light rail stations in Charlotte, NC," Journal of Transport Geography, Elsevier, vol. 86(C).
    4. Bardaka, Eleni & Delgado, Michael S. & Florax, Raymond J.G.M., 2019. "A spatial multiple treatment/multiple outcome difference-in-differences model with an application to urban rail infrastructure and gentrification," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 325-345.
    5. Allen, Jeff & Higgins, Christopher D. & Silver, Daniel & Farber, Steven, 2023. "Are low-income residents disproportionately moving away from transit?," Journal of Transport Geography, Elsevier, vol. 110(C).
    6. Sangwan Lee & Liming Wang, 2022. "Intermediate Effect of the COVID-19 Pandemic on Prices of Housing near Light Rail Transit: A Case Study of the Portland Metropolitan Area," Sustainability, MDPI, vol. 14(15), pages 1-17, July.
    7. Tornabene, Sara & Nilsson, Isabelle, 2021. "Rail transit investments and economic development: Challenges for small businesses," Journal of Transport Geography, Elsevier, vol. 94(C).
    8. Zhou, Zhengyi & Zhang, Anming, 2021. "High-speed rail and industrial developments: Evidence from house prices and city-level GDP in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 98-113.
    9. 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.
    10. Mikula, Štěpán & Molnár, Peter, 2023. "Expected transport accessibility improvement and house prices: Evidence from the construction of an undersea road tunnel system," Journal of Transport Geography, Elsevier, vol. 111(C).
    11. Wang, Lisha & Miwa, Tomio & Jiang, Meilan & Morikawa, Takayuki, 2021. "Heterogeneous residential distribution changes and spillover effects by railway projects: The case study of Nagoya, Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 145-163.
    12. 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.
    13. 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.
    14. Seunghoon Kim, 2020. "The Social Justice Impact of the Transit-Oriented Development," Societies, MDPI, vol. 11(1), pages 1-19, December.
    15. John Murray & Eleni Bardaka, 2022. "Evaluating the spatial and temporal distribution of beltway effects on housing prices using difference-in-differences methods," Transportation, Springer, vol. 49(6), pages 1963-1998, December.
    16. Houston, Douglas & Zuñiga, Michelle E., 2021. "Perceptions of neighborhood change in a Latinx transit corridor," Journal of Transport Geography, Elsevier, vol. 94(C).
    17. Qiu, Feng & Tong, Qingmeng, 2021. "A spatial difference-in-differences approach to evaluate the impact of light rail transit on property values," Economic Modelling, Elsevier, vol. 99(C).
    18. Liu, Xueli & Jiang, Chunxia & Wang, Feng & Yao, Shujie, 2021. "The impact of high-speed railway on urban housing prices in China: A network accessibility perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 84-99.
    19. 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.
    20. 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.

    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:transa:v:155:y:2022:i:c:p:354-372. 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: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    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.