The Price of Reliable Accessibility

The literature on induced demand suggests that transportation system interventions that improve travel time not only result in short-term responses by travelers to shift modes, times of travel and routes, but also include longer-term influences on land use outcomes that further affect travel demand. This literature has not explored, however, whether improvements in travel time reliability might generate long-term impacts on real estate markets. Even the casual observer would likely agree that unreliable travel time to work is problematic, and a growing body of research has begun to measure the degree to which travelers value travel time reliability by analyzing their route or mode choices. To the authors' knowledge, however, no one has yet addressed the question of whether travel time reliability has longer-term effects beyond daily travel decisions, by influencing real estate market outcomes. Is travel time reliability valued enough by individuals, households, and firms to be capitalized into higher real estate prices and rents in locations with more reliable accessibility? Does reliability have enough value to influence long-term choices of households or firms regarding where they rent or purchase real estate? These are the questions explored in this research.

• Supplemental Notes:
  • This paper was sponsored by TRB committee ADD30 Transportation and Land Development.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Waddell, Paul
  • Foti, Fletcher
• Conference:
  • Transportation Research Board 93rd Annual Meeting
  • Location: Washington DC
  • Date: 2014-1-12 to 2014-1-16
• Date: 2014

Language

• English

Media Info

• Media Type: Digital/other
• Features: Maps; References; Tables;
• Pagination: 18p
• Monograph Title: TRB 93rd Annual Meeting Compendium of Papers

Subject/Index Terms

• TRT Terms: Accessibility; Ownership, leasing and rental; Property values; Real property; Reliability; Travel time
• Subject Areas: Economics; Transportation (General); I10: Economics and Administration;

Filing Info

• Accession Number: 01516316
• Record Type: Publication
• Report/Paper Numbers: 14-5545
• Files: TRIS, TRB, ATRI
• Created Date: Feb 28 2014 1:32PM