Fading premiums: The effect of light rail on residential property values in Minneapolis, Minnesota

Pilgram, Clemens; West, Sarah E.

doi:10.1016/j.regsciurbeco.2017.12.008

Cited by 40 publications

(25 citation statements)

References 17 publications

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“…Even during construction, properties close to future transit stations experience value uplifts. In Minnesota, US, Pilgram and West (2018) estimate the impact of an announcement is small and insignificant, but during construction the effect was a 2.5% increase in home values, and by the time the light rail started operations, properties within the rail corridor experienced a further 4.3% increase in value.…”

Section: Project Phasing and Value Impactsmentioning

confidence: 97%

Sustaining Transit Investment in Asia�s Cities:

2019

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Section: Project Phasing and Value Impactsmentioning

confidence: 97%

Sustaining Transit Investment in Asia�s Cities:

2019

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“…Many of the earlier studies on the transit-home value connection were cross-sectional in nature which prohibited an in-depth examination onto when capitalization effects may begin and end. A more recent study by Pilgram and West (2018) for the case of a new transit line in Minneapolis, MN used repeat sales data found for single family homes, price premiums were present only in the years immediately following the opening of the line and dissipated to zero seven years after service began. The authors controlled for station heterogeneity and tested the robustness of their results on several sets of control groups -limitations present in earlier studies.…”

Section: Housing Values and Rentsmentioning

confidence: 99%

“…Two studies found that incomes and housing values or rents increased in new transit neighborhoods (Bardaka, Delgado, & Florax, 2018;Pollack, Bluestone, & Billingham, 2010), however, both of these analyses compared transit neighborhoods to the city or metro-area as a whole. Other research has pointed out that city-wide comparisons tend to inflate price capitalization impacts (Pilgram & West, 2018). The use of a set of control neighborhoods that closely match the 'treatment' or transit neighborhoods is the more desirable method.…”

Section: Neighborhood Changementioning

confidence: 99%

Transit-induced gentrification and displacement: The state of the debate

Delmelle

2021

Advances in Transport Policy and Planning

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Investments in new transportation infrastructure hold the potential to transform the urban socioeconomic landscape by reshaping accessibility and by encouraging new developments around these investments. This chapter outlines the theoretical arguments for why and how transport, specifically rail transit, is expected to impact the socioeconomic composition of neighborhoods and reviews the relevant empirical literature on the subject. Neighborhood socioeconomic change, including gentrification, can be viewed as the product of shifts in residential sorting of residents reacting to the placement of a new (transit) amenity which may place increased demand for living in a particular area. This demand may place an upward pressure on nearby housing values and rents, affecting the socioeconomic composition of those willing and able to afford these price premiums, thus spurring or accelerating gentrification. Rising land values may also lead to the disproportionate exit of lower-income residents unable to keep up with elevated rents or property taxes. To date, the empirical evidence on the link between transport investments and gentrification has mixed findings, very often underscoring the importance of local context in directing a neighborhood's path. Research has overwhelmingly centered on aggregate neighborhood changes, but several studies have recently emerged that center on individual movements that give rise to these neighborhood-scale outcomes.

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“…In developed countries, Mayer and Trevien () analyse the opening and progressive extension of a new railroad facility in the Paris metropolitan region to measure the impact on firm location, employment, and population growth. Pilgram and West () use a DiD approach to measure the premium over residential property values due to the proximity to a light rail station in Minnesota.…”

Section: State Of the Artmentioning

confidence: 99%

“…However, in general, studies find it easier to observe a direct and immediate impact over market variables (e.g., land prices and property values) than over socio‐economic variables such as population or business activities—which require more time and must be accompanied by complementary political, economic and social measures (Fariña Tojo et al, ). Thus, Pilgram and West () observe that there is a premium for residential property values due to the proximity to a light rail station, but the premium varies depending how the control group is defined. Firms also frequently benefit from improved connections.…”

Section: State Of the Artmentioning

confidence: 99%

Spread or backwash: The impact on population dynamics and business performance of a new road in a rural county of Galicia (Spain)

Peón

Rodríguez-Álvarez

Iglesias

2019

Papers in Regional Science

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The natural experiment provided by the opening of a section that completed the A8 motorway in Mariña de Lugo, a rural area in Galicia (Spain), offers an opportunity to identify whether spread or backwash effects in economic activity are observed. The new section directly affects only a small strip of the territory-where the transition from the inland rural areas to the more dynamic coastal area takes place. This allows us to test a separate dual inner-coastal socio-economic performance after the opening of the new road-an analysis that has rarely been performed for rural areas in developed countries. We study the impact over population growth, employment and business financial results, using the differences-in-differences approach. The results we obtain are consistent with the spread hypothesis for the nearest municipality to the new road section, while the spread effects did not disseminate to the neighbouring municipalities. These global results hide a different performance at the sector level, positive for transport and manufacturing companies, and negative for retail firms and hospitality.

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Fading premiums: The effect of light rail on residential property values in Minneapolis, Minnesota

Cited by 40 publications

References 17 publications

Sustaining Transit Investment in Asia�s Cities:

Sustaining Transit Investment in Asia�s Cities:

Transit-induced gentrification and displacement: The state of the debate

Spread or backwash: The impact on population dynamics and business performance of a new road in a rural county of Galicia (Spain)

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