Transit-induced socioeconomic ascent and new metro stations in Helsinki Metropolitan Area: Distinct effects on renters, homeowners, and pre-existing housing dwellers

Document Type

Journal Article

Publication Date


Subject Area

place - urban, mode - subway/metro, policy - sustainable, land use - impacts, land use - planning, land use - transit oriented development


Public transit, Gentrification, Urban renewal, Urban social sustainability, Urban environmental sustainability


In recent years, transit-oriented developments have been studied from different angles in different countries. Question has been raised whether public investments in transportation trigger the areas nearby to gentrify or even cause the affordability paradox for the low-income households if they cannot afford to live in the accessibility improved areas. This article contributes to the literature of transit-induced neighbourhood change by estimating the short-term causal effect of accessibility improvements on neighbourhoods' household income, share of highly educated individuals, and share of low-income households, separating between renters and residents in the existing and new housing stock. We are using a quasi-experimental study design with propensity score matching and difference-in-differences regression setup to analyse the socioeconomic changes in the areas close to the newly built metro stations. Overall, we identify a positive effect on the share of residents with higher educations, but don't see effects on median household income or share of low-income households. However, on closer examination, we find short-term transit-induced changes for residents in old housing stock, and to some extent for homeowners, but for the renters we don't find significant results. The findings of this article show that short-term transit-induced neighbourhood change occurs in areas where accessibility has improved.


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


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