Rail transit investment and property values: An old tale retold

Value‐added effects of transit‐oriented development: The impact of urban rail on commercial property values with consideration of spatial heterogeneity

“…Finally, recent literature has addressed the need for local examination of the price effect as these literature sees that the generalization of market responsiveness based on global models from the past research may not be adequate (Du and Mulley ; Mulley ; Bohman and Nilsson ; Higgins and Kanaroglou ; Zhong and Li ). In this study, both the spatial Durbin model and the GWR model indicate that great spatial variation exists even from the same rail system.…”

“…The numerous amount of literature on evaluating the impact of rail transit on property values derives from a clear policy interest in understanding what values can be captured from public transportation investment (Mulley et al ; Zhong and Li ). The literature with hedonic price model generally assumes that station proximity has immediate effects on adjacent properties, and should be capitalized into property values.…”

“…Interest in hedonic modelling with the consideration of spatial heterogeneity have grown rapidly (Mathur and Ferrell 2013;Lu et al 2014;Dziauddin et al 2015;Zhong and Li 2016). Fotheringham et al (2003) first extended the local regression to the spatial domain by taking both spatial non-stationarity and dependence into consideration.…”

“…Housing is heterogeneous in nature and has specific implicit characteristics including property and location features (Sheppard 1999;Malpezzi 2003;Medda 2012). In transportation literature, through its focus on property values as a results of a multitude of property features, the theory of hedonic assessment lays foundations for many ex post evaluations of transportation projects, ex ante studies (e.g., Assessing ex ante social benefits from an urban rail project; Camagni and Capello 2006) or environmental externalities studies (e.g., Estimating truck traffic on housing prices; Li and Saphores 2012b) The numerous amount of literature on evaluating the impact of rail transit on property values derives from a clear policy interest in understanding what values can be captured from public transportation investment (Mulley et al 2016;Zhong and Li 2016). The literature with hedonic price model generally assumes that station proximity has immediate effects on adjacent properties, and should be capitalized into property values.…”

Is the Light Rail "Tide" Lifting Property Values? Evidence from Hampton Roads, Virginia

“…It seems reasonable to expect a light rail system that provides accessibility benefits to also have significant ridership. Zhong and Li (2016) suggests that heterogeneity across cities in terms of technology, development stage and housing markets could explain differences in property values. Furthermore, Baum-Snow and Kahn (2005) argue that new rail transit is most effective in more densely populated areas and in locations with elevated commuting times.…”