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The Anticipated Capitalisation Effect of a New Metro Line on Housing Prices

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Author Info
Claudio A. Agostini
Gastón A. Palmucci

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Abstract

Housing units with closer access to public transportation enjoy a higher market value than those with similar characteristics but poorer access. This difference can be explained by the lower cost of transport to the main workplaces and shopping areas in town. For this reason, investments in public transport infrastructure, such as building a new metro line, are capitalised totally or partially into land and housing prices. Copyright (c) 2008 The Authors Journal compilation (c) Institute for Fiscal Studies, 2008.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1475-5890.2008.00074.x
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Publisher Info
Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

Volume (Year): 29 (2008)
Issue (Month): 2 (06)
Pages: 233-256
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Handle: RePEc:ifs:fistud:v:29:y:2008:i:2:p:233-256

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This page was last updated on 2009-11-22.

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