Title

Comparing Rail Transit Capitalization Benefits for Single-Family and Condominium Units in San Diego, California

Authors

Michael Duncan

Document Type

Journal Article

Publication Date

2008

Subject Area

infrastructure - station, economics - benefits, mode - rail

Keywords

Single family dwellings, San Diego (California), Rail transit stations, Property values, Condominiums

Abstract

This research analyzes and compares the effects that rail transit stations have on values of condominiums and single-family homes in San Diego, California. It is hypothesized that households on the market for a condominium will value proximity to rail stations more than those on the market for a single-family home will and therefore the capitalization benefits are greater for condominiums. Past research has shown that property near rail stations sells at a modest premium (between 0% and 10%) in many U.S. cities. However, most of these studies focus on single-family homes. The hedonic price analysis presented in this paper indicates that condominiums receive capitalization benefits in excess of 10%, whereas the benefits received by single-family properties fall within the more typical range (<10%).