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The Impact of Transit-oriented Development on Housing Prices in San Diego, CA

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  • Michael Duncan

    (Department of Geography and Earth Sciences, University of North Carolina Charlotte, 9201 University City Boulevard, Charlotte, North Carolina, 28223, USA, m.duncan@uncc.edu)

Abstract

This research measures the influence of transit-oriented development (TOD) on the San Diego, CA, condominium market. Many view TOD as a key element in creating a less auto dependent and more sustainable transport system. Price premiums indicate a potential for a market-driven expansion of TOD inventory. A hedonic price model is estimated to isolate statistically the effect of TOD. This includes interaction terms between station distance and various measures of pedestrian orientation. The resulting model shows that station proximity has a significantly stronger impact when coupled with a pedestrian-oriented environment. Conversely, station area condominiums in more auto-oriented environments may sell at a discount. This indicates that TOD has a synergistic value greater than the sum of its parts. It also implies a healthy demand for more TOD housing in San Diego.

Suggested Citation

  • Michael Duncan, 2011. "The Impact of Transit-oriented Development on Housing Prices in San Diego, CA," Urban Studies, Urban Studies Journal Limited, vol. 48(1), pages 101-127, January.
    • Handle: RePEc:sae:urbstu:v:48:y:2011:i:1:p:101-127
    DOI: 10.1177/0042098009359958
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    3. Koen van Ruijven & Paul Verstraten & Peter Zwaneveld, 2019. "Transit-oriented developments and residential property values," CPB Discussion Paper 399, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Boarnet, Marlon G & Burinskiy, Eygeny & Deadrick, Lauren & Gullen, Danielle & Ryu, Nicholas, 2017. "The Economic Benefits of Vehicle Miles Traveled (VMT)- Reducing Placemaking: Synthesizing a New View," Institute of Transportation Studies, Working Paper Series qt5gx55278, Institute of Transportation Studies, UC Davis.
    5. Yang, Jiawen & Quan, Jige & Yan, Bin & He, Canfei, 2016. "Urban rail investment and transit-oriented development in Beijing: Can it reach a higher potential?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 140-150.
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    7. Alicia N. Rambaldi & Cameron S. Fletcher & Kerry Collins & Ryan R.J. McAllister, 2013. "Housing Shadow Prices in an Inundation-prone Suburb," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1889-1905, July.
    8. Chen, Zhenhua & Haynes, Kingsley E., 2015. "Impact of high speed rail on housing values: an observation from the Beijing–Shanghai line," Journal of Transport Geography, Elsevier, vol. 43(C), pages 91-100.
    9. Mitra, Suman K. & Saphores, Jean-Daniel M., 2016. "The value of transportation accessibility in a least developed country city – The case of Rajshahi City, Bangladesh," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 184-200.
    10. Kamruzzaman, Md. & Wood, Lisa & Hine, Julian & Currie, Graham & Giles-Corti, Billie & Turrell, Gavin, 2014. "Patterns of social capital associated with transit oriented development," Journal of Transport Geography, Elsevier, vol. 35(C), pages 144-155.
    11. Jenny Schuetz, 2015. "Do rail transit stations encourage neighbourhood retail activity?," Urban Studies, Urban Studies Journal Limited, vol. 52(14), pages 2699-2723, November.
    12. Kamruzzaman, Md. & Shatu, Farjana Mostafiz & Hine, Julian & Turrell, Gavin, 2015. "Commuting mode choice in transit oriented development: Disentangling the effects of competitive neighbourhoods, travel attitudes, and self-selection," Transport Policy, Elsevier, vol. 42(C), pages 187-196.
    13. Yuxiang Wang & Xueli Liu & Feng Wang, 2018. "Economic Impact of the High-Speed Railway on Housing Prices in China," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    14. Xu, Yangfei & Zhang, Qinghua & Zheng, Siqi, 2015. "The rising demand for subway after private driving restriction: Evidence from Beijing's housing market," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 28-37.
    15. Duncan, Michael, 2019. "Would the replacement of park-and-ride facilities with transit-oriented development reduce vehicle kilometers traveled in an auto-oriented US region?," Transport Policy, Elsevier, vol. 81(C), pages 293-301.
    16. Sidorovykh, Aleksandra, 2015. "Estimation of effects of transport accessibility on housing prices," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 37(1), pages 43-56.
    17. Kay, Andrew I. & Noland, Robert B. & DiPetrillo, Stephanie, 2014. "Residential property valuations near transit stations with transit-oriented development," Journal of Transport Geography, Elsevier, vol. 39(C), pages 131-140.
    18. Papa, Enrica & Bertolini, Luca, 2015. "Accessibility and Transit-Oriented Development in European metropolitan areas," Journal of Transport Geography, Elsevier, vol. 47(C), pages 70-83.
    19. Noland, Robert B. & Weiner, Marc D. & DiPetrillo, Stephanie & Kay, Andrew I., 2017. "Attitudes towards transit-oriented development: Resident experiences and professional perspectives," Journal of Transport Geography, Elsevier, vol. 60(C), pages 130-140.
    20. Amir Forouhar & Mahnoosh Hasankhani, 2018. "The effect of Tehran metro rail system on residential property values: A comparative analysis between high-income and low-income neighbourhoods," Urban Studies, Urban Studies Journal Limited, vol. 55(16), pages 3503-3524, December.
    21. Sun, Weizeng & Zheng, Siqi & Wang, Rui, 2015. "The capitalization of subway access in home value: A repeat-rentals model with supply constraints in Beijing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 104-115.
    22. Iseki, Hiroyuki & Jones, Robert P., 2018. "Analysis of firm location and relocation in relation to Maryland and Washington, DC metro rail stations," Research in Transportation Economics, Elsevier, vol. 67(C), pages 29-43.
    23. 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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