IDEAS home Printed from https://ideas.repec.org/p/cpb/discus/399.html
   My bibliography  Save this paper

Transit-oriented developments and residential property values

Author

Listed:
  • Koen van Ruijven

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Paul Verstraten

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Peter Zwaneveld

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

As urbanization continues, congestion externalities are becoming more important due to an increasing utilization of the prevailing infrastructure. A growing number of cities have conducted transit-oriented developments to mitigate these congestion externalities. In this article, we analyze the effects of transit-oriented developments on residential property values As an extension to the standard hedonic pricing method, we employ the synthetic control method to estimate the value-added of transit-oriented developments. Three quantitative case studies in the Netherlands indicate that the effects of transit-oriented developments are highly heterogeneous. One case shows strong positive results. The other two are either insignificant, or temporarily negative.

Suggested Citation

  • 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.
    • Handle: RePEc:cpb:discus:399
    as

    Download full text from publisher

    File URL: https://www.cpb.nl/sites/default/files/omnidownload/dp-399-transit-oriented-developments-and-residential-property-valuesmk.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March.
    2. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219, February.
    3. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    4. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    5. Hans R. A. Koster & Jos N. van Ommeren & Piet Rietveld, 2016. "Historic amenities, income and sorting of households," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 203-236.
    6. Guerrieri, Veronica & Hartley, Daniel & Hurst, Erik, 2013. "Endogenous gentrification and housing price dynamics," Journal of Public Economics, Elsevier, vol. 100(C), pages 45-60.
    7. 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.
    8. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    9. Albert Saiz, 2003. "Room in the Kitchen for the Melting Pot: Immigration and Rental Prices," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 502-521, August.
    10. Brinkman, Jeffrey C., 2016. "Congestion, agglomeration, and the structure of cities," Journal of Urban Economics, Elsevier, vol. 94(C), pages 13-31.
    11. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    12. 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.
    13. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    14. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    15. Allen Klaiber, H. & Phaneuf, Daniel J., 2010. "Valuing open space in a residential sorting model of the Twin Cities," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 57-77, September.
    16. 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.
    17. Mathur, Shishir & Ferrell, Christopher, 2013. "Measuring the impact of sub-urban transit-oriented developments on single-family home values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 42-55.
    18. Edward L. Glaeser, 2005. "Reinventing Boston: 1630--2003," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 119-153, April.
    19. Rappaport, Jordan, 2008. "Consumption amenities and city population density," Regional Science and Urban Economics, Elsevier, vol. 38(6), pages 533-552, November.
    20. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    21. Brueckner, Jan K & Fansler, David A, 1983. "The Economics of Urban Sprawl: Theory and Evidence on the Spatial Sizes of Cities," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 479-482, August.
    22. Saia, Alessandro, 2017. "Choosing the open sea: The cost to the UK of staying out of the euro," Journal of International Economics, Elsevier, vol. 108(C), pages 82-98.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Forouhar, Amir, 2022. "Rail transit station and neighbourhood change: A mixed-method analysis with respect to neighbourhood context," Journal of Transport Geography, Elsevier, vol. 102(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koen van Ruijven & Paul Verstraten & Peter Zwaneveld, 2019. "Transit-oriented developments and residential property values," CPB Discussion Paper 399.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Nauro Campos & Fabrizio Coricelli & Luigi Moretti,, 2020. "Choosing Institutional over Economic Integration: Are There Growth Effects?," Working Papers hal-03028143, HAL.
    3. Diego Zambiasi & Steven Stillman, 2020. "The Pot Rush: Is Legalized Marijuana A Positive Local Amenity?," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 667-679, April.
    4. Mathilde Poulhes, 2017. "From Latin Quarter to Montmartre Investigating Parisian Real-Estate Prices," Working Papers 2017-13, Center for Research in Economics and Statistics.
    5. Verstegen, Loes & van Groezen, Bas & Meijdam, Lex, 2017. "Benefits of EMU Participation : Estimates using the Synthetic Control Method," Other publications TiSEM 505ae6bb-8e7a-4d71-9f44-e, Tilburg University, School of Economics and Management.
    6. 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.
    7. Bibek Adhikari, 2022. "A Guide to Using the Synthetic Control Method to Quantify the Effects of Shocks, Policies, and Shocking Policies," The American Economist, Sage Publications, vol. 67(1), pages 46-63, March.
    8. Corinne Autant-Bernard & Ruben Fotso & Nadine Massard, 2022. "Evaluating the impact of public policies on large firms: a synthetic control approach to science-industry transfer policies," Revue d'économie industrielle, De Boeck Université, vol. 0(4), pages 9-50.
    9. Esteban Colla‐De‐Robertis & Rafael Garduno Rivera, 2021. "The effect of a free trade agreement with the United States on member countries' per capita GDP: A synthetic control analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1129-1145, August.
    10. William Addessi & Bianca Biagi & Maria Giovanna Brandano, 2019. "Evaluating the effect of the introduction of the euro on tourist flows: A synthetic control approach," The World Economy, Wiley Blackwell, vol. 42(5), pages 1554-1575, May.
    11. Tveter, Eivind & Welde, Morten & Odeck, James, 2017. "Do Fixed Links Affect Settlement Patterns: A Synthetic Control Approach," Research in Transportation Economics, Elsevier, vol. 63(C), pages 59-72.
    12. Puzzello, Laura & Gomis-Porqueras, Pedro, 2018. "Winners and losers from the €uro," European Economic Review, Elsevier, vol. 108(C), pages 129-152.
    13. Baum-Snow, Nathaniel & Ferreira, Fernando, 2015. "Causal Inference in Urban and Regional Economics," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 3-68, Elsevier.
    14. Thomas COUDERT & Blandine ZIMMER, 2023. "Giving up the euro can be a good and a bad idea," Working Papers of LaRGE Research Center 2023-01, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    15. Ferrari, Alessandro & Rogantini Picco, Anna, 2023. "Risk sharing and the adoption of the Euro," Journal of International Economics, Elsevier, vol. 141(C).
    16. Giovanni Cerulli & Silvia Nenci & Luca Salvatici & Antonio Zinilli, 2022. "Currency Unions and Global Value Chains: The Impact of the Euro on the Italian Value Added Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(2), pages 373-407, July.
    17. Abidemi Adisa & Michael Farmer & Jamie Bologna Pavlik, 2023. "The effect of the Mahathir regime on the Malaysian economy," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(1), pages 97-114, January.
    18. Christian Ochsner & Pia Wassmann, 2016. "Die ökonomischen Effekte der EU-Osterweiterung: Profitierten die Grenzregionen der alten Mitgliedsstaaten?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(05), pages 24-31, October.
    19. Billy, Alexander & Packard, Michael, 2022. "Crime and the Mariel Boatlift," International Review of Law and Economics, Elsevier, vol. 72(C).
    20. Hong Zhuang & Miao Grace Wang & Imre Ersoy & Mesut Eren, 2023. "Does joining the European monetary union improve labor productivity? A synthetic control approach," Journal of Productivity Analysis, Springer, vol. 59(3), pages 287-306, June.

    More about this item

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpb:discus:399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cpbgvnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.