Hedonic Value of Transit Accessibility: An Empirical Analysis in a Small Urban Area

Urban economic theory suggests that improved accessibility by transportation investments have the potential to drive up the bids for lands. A number of studies have investigated the impact of rail transit on home sales but produced mixed results. Further, few studies have explored how bus transit influences the lease rate of apartments. This question is more relevant than the relationship between rail transit and home prices because the scale of bus transit is regional as opposed to a narrow corridor of rail transit, and apartment dwellers are more likely to be influenced by transit accessibility than home owners. Using about 400 apartment dwellers in Fargo, this study developed a hedonic price model to determine implicit price of proximity to bus routes. We found a negative impact of bus transit on apartment rent after controlling for other factors, however. We speculated that this negative relationship could represent spurious relationships from other causal factors as well as nuisance effects of bus transit itself.

• Record URL:
  http://www.ugpti.org/resources/reports/details.php?id=582
• 
• Corporate Authors:

  Upper Great Plains Transportation Institute

  North Dakota State University
  1320 Albrecht Boulevard
  Fargo, ND  United States  581052

  Federal Transit Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Cao, Xinyu
  • Hough, Jill A
• Publication Date: 2007-8

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 21p

Subject/Index Terms

• TRT Terms: Accessibility; Apartment buildings; Bus routes; Bus transit; Rent; Urban areas
• Identifier Terms: Hedonic price method
• Uncontrolled Terms: Apartment dwellers; Leases; Proximity
• Geographic Terms: Fargo (North Dakota)
• Subject Areas: Economics; Passenger Transportation; Planning and Forecasting; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01446286
• Record Type: Publication
• Report/Paper Numbers: DP-191
• Files: TRIS, USDOT
• Created Date: Sep 17 2012 8:53AM