IMPACT OF A HIGH SPEED RAPID TRANSIT FACILITY ON RESIDENTIAL PROPERTY VALUES

A very simple model of a radial transport investment impact is developed from the economic law of market areas. The model delineates spatially the areas that will be served by competing modes and by competing stations under Von Thunen assumptions that all economic activity takes place at the city center. The market area of the investment is shown to be also impact area of the investment. Benefits of the investment are in the form of transport costs saved by the users of the investment. Contours of equal benefit are easily derived from the analysis and shown to be hyperbolas. These savings will tend to be capitalized into the price of the properties in the impact area of the investment. The model is empirically estimated in the context of the Philadelphia-Lindenwold High-Speed Line. A regression model indicates that the savings variable is significant, has the correct sign, and represents an increase of $149 in the sales price of a property for each dollar of daily savings that a commuter residing on the property receives. Overall, the benefit to the property owners in the Lindenwold Line's impact area is approximately $34 million dollars.

  • Corporate Authors:

    Planning Transport Associates, Incorporated

    P.O. Box 4824, Duke Station
    Durham, NC  United States  27706
  • Authors:
    • Allen, W B
    • Boyce, D E
  • Publication Date: 1974-6

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Filing Info

  • Accession Number: 00096103
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 10 1981 12:00AM