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

• Published in: Journal of planning education and research Vol. 44; no. 4; pp. 2086 - 2097
• Main Authors: Peng, Qiong, Knaap, Gerrit
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 01-12-2024; Sage Publications Ltd
• Subjects: Housing; Light rail transportation; Policy making; Property values; Railway construction; Railway stations; Real estate; Subway stations; Transit-oriented development; Transportation; Urban development; Urban rail; 重复交易法; 华盛顿都市区轻轨紫线; housing; Vivienda; Tránsito de tren ligero; Efectos de red; repeat-sales approach; Línea morada; hedonic; light rail transit; Enfoque de repetición de ventas; network effects; 住房; hedónico; 轻轨交通; Purple Line; 效用估价法; 网络效应
• ISSN: 0739-456X; 1552-6577
• DOI: 10.1177/0739456X221133022

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.