The effect of bus rapid transit on local home prices

Document Type

Journal Article

Publication Date

2023

Subject Area

place - north america, place - urban, mode - bus rapid transit, economics - value capture, land use - impacts

Keywords

Bus Rapid Transit (BRT), price effect, real estate value

Abstract

Bus Rapid Transit (BRT) systems have become increasingly common in US cities. BRT stations provide a local amenity by improving transportation options for local residents, but may also represent a local nuisance due to noise or displacement of other road users. We estimate whether BRT is priced into local real estate by studying a recently opened BRT project in Vancouver, Washington. We use a difference-in-difference method with both hedonic and repeat sales estimators to test for a price effect. We estimate a 5%–7% price premium for homes located within a 20 min walk of a BRT station. Overall, BRT generated new real estate value that exceeded the project’s construction costs by a factor of six. We discuss how government could leverage future residential property value increases to fund construction of BRT projects.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Research in Transportation Economics Home Page:

http://www.sciencedirect.com/science/journal/07398859

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