Impact of transit stations on house prices across entire price spectrum: A quantile regression approach. (December 2020)

• Record Type: Journal Article
• Authors: Mathur, Shishir
• Is Part Of: Land use policy. Volume 99(2020)
• Publication Date: 2020-12
• Subjects: Land use policy -- House prices -- Regression -- Quantile regression -- Hedonic regression -- Transit -- Transit stations -- Rail -- Urban economics -- Value capture; Land use -- Periodicals; Land use -- Government policy -- Periodicals; Sol, Utilisation du -- Périodiques; Sol, Utilisation du -- Politique gouvernementale -- Périodiques; Electronic journals; 333.7305
• DOI: 10.1016/j.landusepol.2020.104828
• Languages: English
• ISSNs: 0264-8377

Abstract

Highlights: This study provides evidence on the impact of a heavy-rail-based transit station on house prices. Dataset includes characteristics of single-family houses sold during January 2000–April 2018 period. Houses are located within eight kilometers of Warm Springs station of the San Francisco Bay Area Rapid Transit system. The station increased house prices across the entire price spectrum. The price increase began more than ten years before the rail service commenced. Abstract: This study provides evidence on the impact of a heavy-rail-based transit station on house prices by employing quantile regression method on a dataset that inventories sales transactions of single-family houses during the January 2000–April 2018 period, and within eight kilometers (five miles) of the Warm Springs station of the San Francisco Bay Area Rapid Transit system. The station is located in Fremont, CA. The results show that a) the station increased house prices across the entire price spectrum, and b) the price increase began more than ten years before the rail service commenced. On a larger note, this study should strengthen efforts to a) provide or extend heavy-rail-based rapid transit systems in areas of high need and b) explore the use of value capture tools to fund transit.