Measuring the impact of sub-urban transit-oriented developments on single-family home values
mode - tram/light rail, land use - impacts, land use - transit oriented development, place - north america
Transit-oriented development, Hedonic regression, Home values
This paper provides evidence on the impact of a sub-urban transit-oriented development (TOD) on surrounding single-family home prices. Using a dataset that inventories single-family home sale transactions surrounding Ohlone Chenyoweth TOD in San Jose, CA, the paper employs hedonic regression to estimate the effect of the TOD on home prices.
Controlling for the effects of the distance from the light rail line, the station and other transportation facilities, the impact of the TOD on home sale prices is statistically significant at p = 0.10 level, with an average home sale price increase of $21,000 (or 3.2%) for every 50% reduction in the distance between the home and the TOD. Further, the paper finds that the TOD’s price effect dissipates after 1/8 mile. Finally, housing prices within 1/8 mile of the TOD were 18.5% higher than the prices more than 1/8 mile from the TOD during the post-TOD construction period; 7.3% higher during the TOD construction period and not statistically different in the pre-TOD construction period.
Permission to publish the abstract has been given by Elsevier, copyright remains with them.
Mathur, S., & Ferrell, C. (2012). Measuring the impact of sub-urban transit-oriented developments on single-family home values. Transportation Research Part A: Policy and Practice, Vol 47, pp. 42-55.