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Comparing the Capitalisation Benefits of Light-rail Transit and Overlay Zoning for Single-family Houses and Condos by Neighbourhood Type in Metropolitan Phoenix, Arizona

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  • Carol Atkinson-Palombo

    (Department of Geography, University of Connecticut, 215 Glenbrook Road, Storrs, Connecticut, 06269-4148 USA, carol.atkinson-palombo@uconn.edu)

Abstract

Light rail transit (LRT) is increasingly accompanied by overlay zoning which specifies the density and type of future development to encourage landscapes conducive to transit use. Neighbourhood type (based on land use mix) is used to partition data and investigate how pre-existing land use, treatment with a park-and-ride (PAR) versus walk-and-ride (WAR) station and overlay zoning interrelate. Hedonic models estimate capitalisation effects of LRT-related accessibility and overlay zoning on single-family houses and condos in different neighbourhoods for the system in metropolitan Phoenix, Arizona. Impacts differ by housing and neighbourhood type. Amenity-dominated mixed-use neighbourhoods—predominantly WAR communities—experience premiums of 6 per cent for single-family houses and over 20 per cent for condos, the latter boosted an additional 37 per cent by overlay zoning. Residential neighbourhoods—predominantly PAR communities—experience no capitalisation benefits for single-family houses and a discount for condos. The results suggest that land use mix is an important variable to select comparable neighbourhoods.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:urbstu:v:47:y:2010:i:11:p:2409-2426
    DOI: 10.1177/0042098009357963
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    4. 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.
    5. Kamruzzaman, Md. & Baker, Douglas & Washington, Simon & Turrell, Gavin, 2013. "Residential dissonance and mode choice," Journal of Transport Geography, Elsevier, vol. 33(C), pages 12-28.
    6. 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.
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    8. Boarnet, Marlon G. & Bostic, Raphael W. & Burinskiy, Evgeniy & Rodnyansky, Seva & Prohofsky, Allen, 2018. "Gentrification Near Rail Transit Areas: A Micro-Data Analysis of Moves into Los Angeles Metro Rail Station Areas," Institute of Transportation Studies, Working Paper Series qt4p4584w8, Institute of Transportation Studies, UC Davis.
    9. Higgins, Christopher D. & Kanaroglou, Pavlos S., 2016. "A latent class method for classifying and evaluating the performance of station area transit-oriented development in the Toronto region," Journal of Transport Geography, Elsevier, vol. 52(C), pages 61-72.
    10. 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.
    11. Phani Kumar, P. & Ravi Sekhar, Ch. & Parida, Manoranjan, 2018. "Residential dissonance in TOD neighborhoods," Journal of Transport Geography, Elsevier, vol. 72(C), pages 166-177.
    12. Sharma, Rohit & Newman, Peter, 2018. "Does urban rail increase land value in emerging cities? Value uplift from Bangalore Metro," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 70-86.
    13. 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.
    14. Boarnet, Marlon G & Bostic, Raphael & Williams, Danielle & Santiago-Bartolomei, Raul & Rodnyansky, Seva & Eisenlohr, Andy, 2017. "Affordable Housing in Transit-Oriented Developments: Impacts on Driving and Policy Approaches," Institute of Transportation Studies, Working Paper Series qt487994z4, Institute of Transportation Studies, UC Davis.
    15. 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.
    16. Shengxiao Li & Luoye Chen & Pengjun Zhao, 2019. "The impact of metro services on housing prices: a case study from Beijing," Transportation, Springer, vol. 46(4), pages 1291-1317, August.
    17. McIntosh, James & Trubka, Roman & Newman, Peter, 2014. "Can value capture work in a car dependent city? Willingness to pay for transit access in Perth, Western Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 320-339.
    18. 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.
    19. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    20. Duncan, Michael & Christensen, Robert K., 2013. "An analysis of park-and-ride provision at light rail stations across the US," Transport Policy, Elsevier, vol. 25(C), pages 148-157.

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