Estimating the value of a new transit option
The research presented here argues that identifying the impacts of rail transit on property values is not possible without estimates of both price gradients to transit stations as well as overall property value trends in transit neighborhoods. The latter may highlight a number of secondary impacts of rail transit on nuisance elements such as crime and parking as well as targeted public and private investment along rail-transit corridors. In order to estimate neighborhood property values, one must establish relevant control neighborhoods. In the case of Charlotte, North Carolina, the public planning and funding process provides information on proposed light rail-transit (LRT) corridors that were ultimately not selected as the first alignment in Charlotte's light rail transit system in 2000. Estimation incorporates a difference-in-difference estimator across a range of hedonic models. Preferred estimates highlight that LRT provides a neighborhood impact of 4.0% for single-family properties and 11.3% for condominiums sold within 1mile of LRT stations. No neighborhood impacts are realized for commercial properties and estimated price gradients provide insignificant impacts across a number of models. Results suggest that LRT investment may be used more as an economic development tool for specific neighborhoods rather than a transportation amenity in cities like Charlotte, which contain sparser development patterns.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
- Goetzmann, William N & Spiegel, Matthew, 1995.
"Non-temporal Components of Residential Real Estate Appreciation,"
The Review of Economics and Statistics,
MIT Press, vol. 77(1), pages 199-206, February.
- Goetzmann, W.N. & Spiegel, M., 1992. "Non-temporal Components of Residential Real Estate Appreciation," Papers 92-20, Columbia - Graduate School of Business.
- Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2007.
"The Impact of Railway Stations on Residential and Commercial Property Value: A Meta-analysis,"
The Journal of Real Estate Finance and Economics,
Springer, vol. 35(2), pages 161-180, August.
- Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2004. "The Impact of Railway Stations on Residential and Commercial Property Value: a Meta Analysis," Tinbergen Institute Discussion Papers 04-023/3, Tinbergen Institute.
- Matthew E. Kahn, 2007. "Gentrification Trends in New Transit-Oriented Communities: Evidence from 14 Cities That Expanded and Built Rail Transit Systems," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 35(2), pages 155-182, 06.
- Case, Karl E & Shiller, Robert J, 1989.
"The Efficiency of the Market for Single-Family Homes,"
American Economic Review,
American Economic Association, vol. 79(1), pages 125-37, March.
- Karl E. Case & Robert J. Shiller, 1988. "The Efficiency of the Market for Single-Family Homes," NBER Working Papers 2506, National Bureau of Economic Research, Inc.
- Keith R. Ihlanfeldt, 2003. "Rail Transit and Neighborhood Crime: The Case of Atlanta, Georgia," Southern Economic Journal, Southern Economic Association, vol. 70(2), pages 273-294, October.
- Redfearn, Christian L., 2009. "How informative are average effects? Hedonic regression and amenity capitalization in complex urban housing markets," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 297-306, May.
- Bowes, David R. & Ihlanfeldt, Keith R., 2001. "Identifying the Impacts of Rail Transit Stations on Residential Property Values," Journal of Urban Economics, Elsevier, vol. 50(1), pages 1-25, July.
- Rajeev H. Dehejia & Sadek Wahba, 1998.
"Propensity Score Matching Methods for Non-experimental Causal Studies,"
NBER Working Papers
6829, National Bureau of Economic Research, Inc.
- Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
- Case, Bradford & Quigley, John M, 1991. "The Dynamics of Real Estate Prices," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 50-58, February.
- Steve Gibbons & Stephen Machin, 2004.
"Valuing Rail Access Using Transport Innovations,"
CEP Discussion Papers
dp0611, Centre for Economic Performance, LSE.
- McDonald, John F. & Osuji, Clifford I., 1995. "The effect of anticipated transportation improvement on residential land values," Regional Science and Urban Economics, Elsevier, vol. 25(3), pages 261-278, June.
- John A. Kilpatrick & Ronald C. Throupe & John I. Carruthers & Andrew Krause, 2007. "The Impact of Transit Corridors on Residential Property Values," Journal of Real Estate Research, American Real Estate Society, vol. 29(3), pages 303-320.
- Cervero, Robert & Landis, John, 1993. "Assessing the impacts of urban rail transit on local real estate markets using quasi-experimental comparisons," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(1), pages 13-22, January.
- Clapp, John M & Giaccotto, Carmelo, 1998. "Price Indices Based on the Hedonic Repeat-Sales Method: Application to the Housing Market," The Journal of Real Estate Finance and Economics, Springer, vol. 16(1), pages 5-26, January.
- Dean H. Gatzlaff & Marc T. Smith, 1993. "The Impact of the Miami Metrorail on the Value of Residences near Station Locations," Land Economics, University of Wisconsin Press, vol. 69(1), pages 54-66.
- Stephen Billings & Thomas Thibodeau, 2011. "Intrametropolitan Decentralization: Is Government Structure Capitalized in Residential Property Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 42(4), pages 416-450, May.
- Daniel P. McMillen & John McDonald, 2004. "Reaction of House Prices to a New Rapid Transit Line: Chicago's Midway Line, 1983-1999," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(3), pages 463-486, 09.
- R. Carter Hill & J. R. Knight & C. F. Sirmans, 1997. "Estimating Capital Asset Price Indexes," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 226-233, May.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:41:y:2011:i:6:p:525-536. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.