Does The Overall Quality in The Supply of An Urban Bus Service Affect House Prices – A North-American Case Study (original) (raw)
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Does an Improved Urban Bus Service Affect House Values?
International Journal of Sustainable Transportation, 2010
This study aims at testing whether, and to what extent, the overall quality in the supply of an urban bus service translates into higher house values for properties located along the lines; Quebec City, Canada, is used as a case study. The study relies on a database provided by the former Quebec Urban Community Assessment Division and, once filtered, includes
Impacts of commuter rail transit on property values - The Montreal North Shore case
Proceedings of the 19th Annual European Real Estate Society Conference - Edinburgh, Scotland, 2012
Computing time-varying accessibility indices Transactions Regression Results Discussion Conclusion The PT financing Issue Infrastructure costs are usually financed by several government levels Operating costs are provided at the local level through property taxes and revenues generated from ticket sales Recurrent deficit of PT operations prevents local governments from investing in new infrastructures → Financing and developing PT is crucial issue for most local authorities
The Impact of Mass Transit on Residential-Property Values
Annals of the Association of American Geographers, 1977
A major impact of mass transit on property values is the capitalization of the reductions in travel costs (travel savings) afforded by a new transportation alternative. The model of mass transit impact presented improves upon existing models in four ways. First, a statistical method is provided to hold constant the factors that might affect property values other than the transportation improvement. Second, the property value gradient to the CBD can be derived by utilizing empirical estimations. Third, two property value gradients are incorporated into the model to study impact. Finally, a "residualization" process controls multicollinearity among housing attributes. The model is used to estimate the impact of newly introduced bus routes on Denver's residential property values.
mpacts of Bus Rapid Transit (BRT) on Surrounding Residential Property Values
As bus rapid transit (BRT) grows in popularity in the United States, a better understanding of the mode's impacts on land uses and property values is needed. Economic theory suggests, and literature has shown, that people are willing to pay higher housing costs to lower their costs of transportation to areas of economic activity. Does high-quality BRT service reliably provide such access and, thereby, increase residential property values? The hypothesis is that property values are higher closer to BRT stations, reflecting a premium for the access provided by the BRT service to various goods, services, employment, education, and recreation. There has been some work on this topic outside of the U.S.; however, due to various cultural, social, and institutional differences, those experiences may not be applicable to U.S. property values. The literature includes, to date, very little work on U.S. BRT systems' impacts on property values using robust econometric techniques and/or spatial modeling. Further, because every BRT system is different, it is necessary to analyze additional case studies to provide a more robust understanding of how modern U.S. experiences with BRT services may affect surrounding property values. This research contributes to the relatively small body of literature on property value impacts of BRT in the U.S. by conducting a case study on Lane Transit District's EmX BRT service (Eugene, Oregon) using econometric modeling techniques to estimate changes in property values associated with the BRT. The analysis is based on hedonic price regression analysis, where sale prices are modeled using several property characteristics that contribute to the market or sale price. The findings of this research indicate that the EmX BRT system does positively impact surrounding single-family home sale prices. Results are statistically significant yet, as expected, relatively small in magnitude. An interesting finding is that the impact of the EmX stations on property values increased in each of the three periods examined in this study. For 2005 single-family home sales, the price increased 823onaverageforevery100metersclosertoastation.In2010,themarginalimpactincreasedtoanaverageof823 on average for every 100 meters closer to a station. In 2010, the marginal impact increased to an average of 823onaverageforevery100metersclosertoastation.In2010,themarginalimpactincreasedtoanaverageof1,056 for every 100 meters closer to a station. In 2016, every 100 meters closer to a station adds an average of $1,128 to a home's sale price. These results provide further insight into how BRT services can enhance the livability and economic development in a community, and provide policymakers and the transit industry throughout the U.S. with the best information possible to make informed transit investment decisions in their communities.
Case Studies on Transport Policy
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Journal of Transport Geography, 2020
Bus rapid transit (BRT) systems have mushroomed worldwide in the last few decades. An enriched understanding of BRT capitalization effects is essential. Although the BRT accessibility effect on housing prices has been extensively explored, the effect of proximity to the BRT corridor (which may be related to unattractive landscape and noise pollution) has been little scrutinized. More importantly, whether and how the two effects vary across price levels and space have yet to be sufficiently studied. To this end, we estimate the effect of BRT accessibility and proximity on housing prices by applying a battery of econometric methods (including hedonic pricing models, spatial regression models, quantile regression models, and a geographically weighted regression model) to 5185 observations in the housing market in Xiamen Island, China. The results of this study are: (1) BRT accessibility premiums and proximity penalties simultaneously exist in the housing market; (2) buyers of high-priced housing have a greater willingness to pay for avoiding the nuisances attributed to proximity to the BRT corridor; (3) the effect of BRT on housing prices is spatially heterogeneous; (4) the BRT accessibility effect is larger in suburban areas than in urban areas; and (5) housing prices are more predictable near the city centers than outside the area, which may be because a greater proportion of the price of a house near the city centers is derived from the location (rather than the building structure). Finally, policy implications (e.g., building acoustic barriers and planting vegetation along the BRT corridor and improving the transit service in suburban areas) are discussed.
Economic impact of a supply change in mass transit in urban areas: A Canadian example
Transportation Research Part A: Policy and Practice, 2011
This paper aims at estimating the economic impact of a supply change in the bus transit service in a Canadian city of medium size. By using a quasi-experiment approach and a difference-in-differences (DID) estimator, it evaluates the impact of the introduction of a rapid bus transit (RBT) in Quebec City (Canada) through a spatio-temporal analysis of house price variations. The hedonic price model shows that the new service generates an increase in house price ranging from 6.9% to 2.9%, for those properties located close to the service corridor where the population is quite dense and where the service was offered initially. Using sales transaction data and municipal assessment records from 1997, the effect on price is translated into an economic impact for the whole region. The paper shows that the improvement in public transit supply generates, for Quebec City, a significant fiscal impact estimated to 6Mandaplus−valueforpropertiesownerscloseto6 M and a plus-value for properties owners close to 6Mandaplus−valueforpropertiesownerscloseto35 M over 12 years. Finally, the implications of this kind of analysis for urban planning and development are discussed.
The Effect of Proximity to Urban Rail on Housing Prices in Ottawa. (With Christopher M. Hewitt)
Journal of Public Transportation , 2013
The availability and ease of access to URT, in turn, may result in distortions in local real estate markets. The conventional wisdom, in fact, suggests that construction of urban rail lines serves as a magnet for new housing development and, in turn, can lead to increases in property values in proximity to URT stations. Existing studies have, in good measure, confirmed this belief, but largely on the basis of global area studies that can often mask locally differentiating factors affecting housing prices. Using data from the City of Ottawa, this study seeks to move beyond such analyses by using spatial regression and mapping techniques that reveal that the relationship between URT stations and housing prices is far more complex than is commonly believed. The study demonstrates that while at the macro-level housing prices do vary positively with proximity to URT stations, the relationship is spatially dependent and may be affected by factors unique to specific locales.
The Effect of Proximity to Urban Rail on Housing Prices in Ottawa
Journal of Public Transportation, 2012
Increasingly, urban rail transit (URT) is seen as a desirable solution for transportation challenges faced by both urban planners and residents of suburban areas alike. The availability and ease of access to URT, in turn, may result in distortions in local real estate markets. The conventional wisdom, in fact, suggests that construction of urban rail lines serves as a magnet for new housing development and, in turn, can lead to increases in property values in proximity to URT stations. Existing studies have, in good measure, confirmed this belief, but largely on the basis of global area studies that can often mask locally differentiating factors affecting housing prices. Using data from the City of Ottawa, this study seeks to move beyond such analyses by using spatial regression and mapping techniques that reveal that the relationship between URT stations and housing prices is far more complex than is commonly believed. The study demonstrates that while at the macro-level housing prices do vary positively with proximity to URT stations, the relationship is spatially dependent and may be affected by factors unique to specific locales.
Journal of Advanced Transportation
A hedonic model for estimating the effects of transit systems on real estate values is specified and calibrated for the city of Naples. The model is used to estimate the external benefits concerning property values which may be attributed to the Naples metro at the present time and in two future scenarios. The results show that only high-frequency metro lines have appreciable effects on real estate values, while low-frequency metro lines and bus lines produce no significant impacts. Our results show that the impacts on real estate values of the metro system in Naples are significant, with corresponding external benefits estimated at about 7.2 billion euros or about 8.5% of the total value of real estate assets.