Effects of Rail Transit on Residential Property Values

Abstract

The impacts of a rail transit system on residential property values have been examined for many metropolitan areas in the United States, China, and other countries, yet there have been few comparison studies between countries. Studies have reported both the positive effects of rail transit resulting from improved accessibility as well as the nuisance effects from noise, pollution, crime, and unsightliness. The net effects of a rail transit system could be mixed, and there has been no agreement on which would dominate. This study used METRORail in Houston, Texas, and the Metro in Shanghai, China, as empirical cases and compared their effects on nearby residential property values. A hedonic price model with ordinary linear regression was used in the case study of Shanghai's rail transit lines. The Houston case study applied ordinary linear regression and multilevel regression techniques to examine the hierarchical structures of spatial data explicitly. The modeling results from both cases suggest that the overall effects of rail transit lines on residential property values are significantly positive. Notable variations of rail transit effects were also observed at various distance ranges and time spans.

Tailoring empirical research on transit access premiums for planning applications

“…Pan and Zhang (2008) reported a unit price increase by 158 yuan psqm for every hundred meters closer to the metro station. The finding was reconfirmed by an updated study by Pan et al (2014), who measured transit premiums by urban rings as market segmentations. The results show that, in the inner ring of Shanghai, property value increases by 1.5% for each 100 m closer to rail station, while the premiums are 1.9% for middle ring and 2.0% for the outer ring.…”

How Does Urban Rail Transit Influence Residential Property Values? Evidence from An Emerging Chinese Megacity

“…However, the relationship between URT and surrounding RPV is still controversial. Most studies found that the URT might generate positive externalities on RPV, represented by the housing price [3,16], while some scholars thought that the impacts of URT on RPV are negative during a certain travel distance due to the increasing problems such as noise, pollution, crowding, public security, and other issues [17,28], and the residents' willingness to pay for the rent might decrease [29,30]. The positive or negative impact might be influenced by the type of transportation system [14,31], the type of real estate considered [32], and so on.…”

Multiple Criteria Evaluation and the Inverse Hierarchy Model for Justifying the Choice of Rail Transport Mode

“…The effects of rail transit on residential property values have been studied in [24]. The railway blocking problem (RBP) is one of the most important railway operation problems.…”