LIGHT-RAIL TRANSIT STATIONS AND PROPERTY VALUES: A HEDONIC PRICE APPROACH

What are the effects of proximity to light-rail transit (LRT) stations on the value of single-family homes? Two forces are at work. Proximity to LRT stations may improve the accessibility of residents to the central business district and the rest of the urban area. Further, proximity to rail stations may result in transportation cost savings for nearby residents. These effects should be positively capitalized in property values. Alternatively, without attention to design, LRT stations may impose negative externalities on nearby properties, with a resulting decline in house values. Which of these effects predominates in the housing market with respect to station proximity? A study was undertaken to analyze sale prices of homes in metropolitan Portland, Oregon. Two distance models to LRT stations were compared. The first showed a positive capitalization of proximity to LRT stations for homes within 500 m (1600 ft or 1/4 mi) of actual walking distance. This effect was equally felt for all homes within that distance zone. The second model found a statistically weak negative price gradient for homes within the 500-m zone. This implies a positive influence of proximity the closer the home is to an LRT station.

Language

  • English

Media Info

  • Features: Figures; References; Tables;
  • Pagination: p. 90-94
  • Monograph Title: Planning and programming, land use, public participation, and computer technology in transportation
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00638779
  • Record Type: Publication
  • ISBN: 0309054702
  • Files: TRIS, TRB
  • Created Date: Nov 10 1993 12:00AM