When and Where Do Home Values Increase in Response to Planned Light Rail Construction?

Document Type

Journal Article

Publication Date

2024

Subject Area

economics - value capture, land use - impacts, land use - transit oriented development, mode - tram/light rail, place - north america, place - urban

Keywords

housing, Purple Line, light rail transit, hedonic, repeat-sales approach, network effects

Abstract

This paper examines the effects of an investment in light rail transit on single-family property values in Montgomery County, Maryland, with a focus on when and where such capitalization takes place and with intent to inform efforts to promote equitable transit-oriented development. We employ both hedonic price and repeat-sales estimation techniques to assure the results are robust. The findings indicate that housing prices, after the light rail transit went into the engineering phase, rose with proximity to anticipated new rail stations but not with proximity to existing metro stations. For planners and policymakers and advocates in Montgomery County, the results provide critical information about where and when value capture and anti-displacement policies are most needed and potentially effective.

Rights

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

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