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Gentrification and Transit in Northwest Chicago

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  • Lin, Jeffrey

Abstract

LeRoy and Sonstelie (1983) propose that the presence of transit, in combination with declining automobile costs, leads to the gentrification of inner-city, transit-served neighborhoods. This paper attempts to empirically demonstrate whether the existence of transit spurred phenomena consistent with gentrification, utilizing data from northwest Chicago between 1975 and 1991. Using changes in residential property values as an indicator of gentrification, evidence is found that properties closest to transit stations increased in value much quicker than those farther away, especially in the period 1985-1991. Properties adjacent to transit stations had a 20% higher increase in value compared with those located a half-mile away, supporting the hypothesis that transit access was a spur to gentrification. The data also supports the notion that gentrification has spread like a “wave" over time, moving away from the lakefront and downtown.

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  • Lin, Jeffrey, 2002. "Gentrification and Transit in Northwest Chicago," MPRA Paper 96656, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96656
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    References listed on IDEAS

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    1. 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.
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    5. LeRoy, Stephen F. & Sonstelie, Jon, 1983. "Paradise lost and regained: Transportation innovation, income, and residential location," Journal of Urban Economics, Elsevier, vol. 13(1), pages 67-89, January.
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    1. Annelise Grube-Cavers & Zachary Patterson, 2015. "Urban rapid rail transit and gentrification in Canadian urban centres: A survival analysis approach," Urban Studies, Urban Studies Journal Limited, vol. 52(1), pages 178-194, January.
    2. Konrad Miciukiewicz & Geoff Vigar, 2012. "Mobility and Social Cohesion in the Splintered City: Challenging Technocentric Transport Research and Policy-making Practices," Urban Studies, Urban Studies Journal Limited, vol. 49(9), pages 1941-1957, July.
    3. Dong, Hongwei, 2017. "Rail-transit-induced gentrification and the affordability paradox of TOD," Journal of Transport Geography, Elsevier, vol. 63(C), pages 1-10.
    4. Viguie, V. & Hallegatte, S., 2014. "Urban infrastructure investment and rent-capture potentials," Policy Research Working Paper Series 7067, The World Bank.
    5. Jyothi Chava & Peter Newman, 2016. "Stakeholder Deliberation on Developing Affordable Housing Strategies: Towards Inclusive and Sustainable Transit-Oriented Developments," Sustainability, MDPI, vol. 8(10), pages 1-21, October.
    6. Jackelyn Hwang & Jeffrey Lin, 2016. "What Have We Learned About the Causes of Recent Gentrification?," Working Papers 16-20, Federal Reserve Bank of Philadelphia.
    7. David Orta, 2021. "“Mexicans Built This Neighborhood!” Gentrification, Organizations, and the Role of Place-Based Identity in Latinx Chicago," Social Sciences, MDPI, vol. 10(8), pages 1-16, August.
    8. Genevieve Giuliano & Jenny Schuetz & Eun Jin Shin, 2016. "Is Los Angeles Becoming Transit Oriented?," Finance and Economics Discussion Series 2016-4, Board of Governors of the Federal Reserve System (U.S.).
    9. Wang, Yiming & Feng, Suwei & Deng, Zhongwei & Cheng, Shuangyu, 2016. "Transit premium and rent segmentation: A spatial quantile hedonic analysis of Shanghai Metro," Transport Policy, Elsevier, vol. 51(C), pages 61-69.
    10. Lin, Jen-Jia & Xie, Ze-Xing, 2020. "The associations of newly launched high-speed rail stations with industrial gentrification," Journal of Transport Geography, Elsevier, vol. 83(C).
    11. Atuesta, Laura H. & Hewings, Geoffrey J.D., 2019. "Housing appreciation patterns in low-income neighborhoods: Exploring gentrification in Chicago," Journal of Housing Economics, Elsevier, vol. 44(C), pages 35-47.
    12. Pierre Filion & Anna Kramer & Gary Sands, 2016. "Recentralization as an Alternative to Urban Dispersion: Transformative Planning in a Neoliberal Societal Context," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(3), pages 658-678, May.
    13. Kyle Fee & Daniel Hartley, 2012. "The relationship between city center density and urban growth or decline," Working Papers (Old Series) 1213, Federal Reserve Bank of Cleveland.
    14. Jackson, Sara L. & Buckman, Joshua, 2020. "Light rail development with or without gentrification?: Neighborhood perspectives on changing sense of place in Denver, Colorado," Journal of Transport Geography, Elsevier, vol. 84(C).
    15. Lin, Jen-Jia & Yang, Shu-Han, 2019. "Proximity to metro stations and commercial gentrification," Transport Policy, Elsevier, vol. 77(C), pages 79-89.
    16. Cervero, Robert, 2004. "Effects of Light and Commuter Rail Transit on Land Prices: Experiences in San Diego County," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 43(1).
    17. Lascano Kežić, Marcelo E. & Durango-Cohen, Pablo Luis, 2018. "New ridership for old rail: An analysis of changes in the utilization of Chicago's urban rail system, 1990–2008," Research in Transportation Economics, Elsevier, vol. 71(C), pages 17-26.
    18. Jenny Schuetz & Genevieve Giuliano & Eun Jin Shin, 2018. "Does zoning help or hinder transit-oriented (re)development?," Urban Studies, Urban Studies Journal Limited, vol. 55(8), pages 1672-1689, June.
    19. Jenny Schuetz, 2015. "Do rail transit stations encourage neighbourhood retail activity?," Urban Studies, Urban Studies Journal Limited, vol. 52(14), pages 2699-2723, November.
    20. Martin Danyluk & David Ley, 2007. "Modalities of the New Middle Class: Ideology and Behaviour in the Journey to Work from Gentrified Neighbourhoods in Canada," Urban Studies, Urban Studies Journal Limited, vol. 44(11), pages 2195-2210, October.
    21. Debby F. Mir & Adolfo E. Sanchez, 2009. "Impact of gentrification on environmental pressure in service micro‐enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 18(7), pages 417-431, November.
    22. Cervero, Robert, 2006. "Effects of Light and Commuter Rail Transit on Land Prices: Experiences in San Diego County," University of California Transportation Center, Working Papers qt75n1b5xc, University of California Transportation Center.

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    More about this item

    Keywords

    gentrification; transit; land use;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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