IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v100y2022ics0966692322000436.html
   My bibliography  Save this article

Build it and they will come: How does a new public transit station influence building construction?

Author

Listed:
  • Champagne, Marie-Pier
  • Dubé, Jean
  • Barla, Philippe

Abstract

The aim of the paper is to investigate the impact of the extension of a metro line on real estate development. An empirical analysis focuses on the relationship between proximity to new stations and the number of new constructions, both commercial and residential, from the announcement of the project. A matching approach based on pre-project characteristics is developed using a 2-km zone around the stations based on a hexagonal grid. The potential effects are separated into three distinct periods in order to identify the presence of speculation, anticipation and adjustment effects, i.e., during the announcement, the construction, and the opening of the line. The results suggest that new commercial buildings development occurs within 750 m of stations at the end of the process, while new residential development is primarily concentrated between 1000 and 1250 m and emerges at the beginning of the process. The joint increase in new residential and commercial constructions within direct proximity to the stations, after the service is in operation, underlines the growth of mixed-use neighborhoods, accommodating both residential and commercial activities.

Suggested Citation

  • Champagne, Marie-Pier & Dubé, Jean & Barla, Philippe, 2022. "Build it and they will come: How does a new public transit station influence building construction?," Journal of Transport Geography, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:jotrge:v:100:y:2022:i:c:s0966692322000436
    DOI: 10.1016/j.jtrangeo.2022.103320
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692322000436
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2022.103320?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jenny Schuetz, 2015. "Do rail transit stations encourage neighbourhood retail activity?," Urban Studies, Urban Studies Journal Limited, vol. 52(14), pages 2699-2723, November.
    2. Lashawn Richburg Hayes, 2000. "Do the Poor Pay More? An Empirical Investigation of Price Dispersion in Food Retailing," Working Papers 825, Princeton University, Department of Economics, Industrial Relations Section..
    3. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1339-1398, Elsevier.
    4. Mejia-Dorantes, Lucia & Paez, Antonio & Vassallo, Jose Manuel, 2012. "Transportation infrastructure impacts on firm location: the effect of a new metro line in the suburbs of Madrid," Journal of Transport Geography, Elsevier, vol. 22(C), pages 236-250.
    5. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    6. Dennis Schoenmaker & Arno Vlist, 2015. "On real estate development activity: the relationship between commercial and residential real estate markets," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 219-232, November.
    7. Giuliano, Genevieve & Small, Kenneth A., 1991. "Subcenters in the Los Angeles region," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 163-182, July.
    8. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    9. John Antonakis & Samuel Bendahan & Philippe Jacquart & Rafael Lalive, 2010. "On making causal claims : A review and recommendations," Post-Print hal-02313119, HAL.
    10. Ibraeva, Anna & Correia, Gonçalo Homem de Almeida & Silva, Cecília & Antunes, António Pais, 2020. "Transit-oriented development: A review of research achievements and challenges," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 110-130.
    11. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
    12. Kevin Credit, 2019. "Transitive properties: a spatial econometric analysis of new business creation around transit," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(1), pages 26-52, January.
    13. J F McDonald & D P McMillen, 1990. "Employment Subcenters and Land Values in a Polycentric Urban Area: The Case of Chicago," Environment and Planning A, , vol. 22(12), pages 1561-1574, December.
    14. Mariano Kulish & Anthony Richards & Christian Gillitzer, 2012. "Urban Structure and Housing Prices: Some Evidence from Australian Cities," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 303-322, September.
    15. Mohammad, Sara I. & Graham, Daniel J. & Melo, Patricia C. & Anderson, Richard J., 2013. "A meta-analysis of the impact of rail projects on land and property values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 158-170.
    16. Akin, Darcin & Kara, Derya, 2020. "Multicriteria analysis of planned intercity bus terminals in the metropolitan city of Istanbul, Turkey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 465-489.
    17. repec:pri:crcwel:446 is not listed on IDEAS
    18. Vincent Chandler & Nikolas Shymko, 2020. "Environmental Impact of Public Transit: Evidence from a Long Strike in Ottawa," Canadian Public Policy, University of Toronto Press, vol. 46(1), pages 59-72, March.
    19. Kyunghun Min & Moonyoung Yoon & Katsunori Furuya, 2019. "A Comparison of a Smart City’s Trends in Urban Planning before and after 2016 through Keyword Network Analysis," Sustainability, MDPI, vol. 11(11), pages 1-25, June.
    20. Lewis, L.B. & Sloane, D.C. & Nascimento, L.M. & Diamant, A.L. & Guinyard, J.J. & Yancey, A.K. & Flynn, G., 2005. "African Americans' access to healthy food options in South Los Angeles restaurants," American Journal of Public Health, American Public Health Association, vol. 95(4), pages 668-673.
    21. Gerke J. Hoogstra & Jouke van Dijk & Raymond J. G. M. Florax, 2017. "Do jobs follow people or people follow jobs? A meta-analysis of Carlino–Mills studies," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(4), pages 357-378, October.
    22. Jean Dubé & Charles-David Babin & Jean-Christophe Dubé & Hemza Lekkat & Alexandre Potvin & Olivier Ringue, 2017. "What comes first, residential or commercial development? Measuring the causal links for a Canadian city over a century," Letters in Spatial and Resource Sciences, Springer, vol. 10(1), pages 57-74, March.
    23. Jean Dubé & Cédric Brunelle, 2014. "Dots to dots: a general methodology to build local indicators using spatial micro-data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 245-272, August.
    24. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    25. Cervero, Robert & Kang, Chang Deok, 2011. "Bus rapid transit impacts on land uses and land values in Seoul, Korea," Transport Policy, Elsevier, vol. 18(1), pages 102-116, January.
    26. Bowes, David R. & Ihlanfeldt, Keith R., 2001. "Identifying the Impacts of Rail Transit Stations on Residential Property Values," Journal of Urban Economics, Elsevier, vol. 50(1), pages 1-25, July.
    27. Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2007. "The Impact of Railway Stations on Residential and Commercial Property Value: A Meta-analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 35(2), pages 161-180, August.
    28. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    29. Lashawn Richburg Hayes, 2000. "Do the Poor Pay More? An Empirical Investigation of Price Dispersion in Food Retailing," Working Papers 825, Princeton University, Department of Economics, Industrial Relations Section..
    30. Lin, Jen-Jia & Yang, Shu-Han, 2019. "Proximity to metro stations and commercial gentrification," Transport Policy, Elsevier, vol. 77(C), pages 79-89.
    31. repec:pri:crcwel:446.pdf is not listed on IDEAS
    32. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    33. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    34. Kevin Credit, 2018. "Transit-oriented economic development: The impact of light rail on new business starts in the Phoenix, AZ Region, USA," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2838-2862, October.
    35. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dubé, Jean & Le Gallo, Julie & Des Rosiers, François & Legros, Diègo & Champagne, Marie-Pier, 2024. "An integrated causal framework to evaluate uplift value with an example on change in public transport supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    2. Champagne, Marie-Pier & Dubé, Jean & Legros, Diègo, 2024. "Standing strong? The causal impact of metro stations on service firms’ survival," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Champagne, Marie-Pier & Dubé, Jean, 2023. "The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review," Transport Policy, Elsevier, vol. 131(C), pages 139-155.
    2. Champagne, Marie-Pier & Dubé, Jean & Legros, Diègo, 2024. "Standing strong? The causal impact of metro stations on service firms’ survival," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    3. Dubé, Jean & Le Gallo, Julie & Des Rosiers, François & Legros, Diègo & Champagne, Marie-Pier, 2024. "An integrated causal framework to evaluate uplift value with an example on change in public transport supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    4. Elina Sukaryavichute & Elizabeth Delmelle & Colleen Hammelman, 2021. "Opportunities and challenges for small businesses in new transit neighborhoods: Understanding impacts through in‐depth interviews," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1025-1041, June.
    5. Rémy Le Boennec & Julie Bulteau & Thierry Feuillet, 2022. "The role of commuter rail accessibility in the formation of residential land values: exploring spatial heterogeneity in peri-urban and remote areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 163-186, August.
    6. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    7. AlQuhtani, Saad & Anjomani, Ardeshir, 2019. "Do rail transit stations affect housing value changes? The Dallas Fort-Worth metropolitan area case and implications," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    8. Helen XH Bao & Johan P Larsson & Vivien Wong, 2021. "Light at the end of the tunnel:The impacts of expected major transport improvements on residential property prices," Urban Studies, Urban Studies Journal Limited, vol. 58(14), pages 2971-2990, November.
    9. Seungwoo Chin & Matthew E. Kahn & Hyungsik Roger Moon, 2020. "Estimating the Gains from New Rail Transit Investment: A Machine Learning Tree Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(3), pages 886-914, September.
    10. Liu, Chang & Bardaka, Eleni, 2023. "Transit-induced commercial gentrification: Causal inference through a difference-in-differences analysis of business microdata," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
    11. Jin, Tanhua & Cheng, Long & Liu, Zhicheng & Cao, Jun & Huang, Haosheng & Witlox, Frank, 2022. "Nonlinear public transit accessibility effects on housing prices: Heterogeneity across price segments," Transport Policy, Elsevier, vol. 117(C), pages 48-59.
    12. Chinmoy Ghosh & Venkatesh Panchapagesan & Madalasa Venkataraman, 2024. "On the Impact of Infrastructure Improvement on Real Estate Property Values: Evidence from a Quasi-natural Experiment in an Emerging Market," The Journal of Real Estate Finance and Economics, Springer, vol. 68(1), pages 103-137, January.
    13. Pasha, Obed & Wyczalkowski, Chris & Sohrabian, Dro & Lendel, Iryna, 2020. "Transit effects on poverty, employment, and rent in Cuyahoga County, Ohio," Transport Policy, Elsevier, vol. 88(C), pages 33-41.
    14. Nathaniel Baum-Snow & Byron F. Lutz, 2011. "School Desegregation, School Choice, and Changes in Residential Location Patterns by Race," American Economic Review, American Economic Association, vol. 101(7), pages 3019-3046, December.
    15. Dubé, Jean & Andrianary, Eugénie & Assad-Déry, François & Poupart, Janie & Simard, Justine, 2018. "Exploring difference in value uplift resulting from new bus rapid transit routes within a medium size metropolitan area," Journal of Transport Geography, Elsevier, vol. 72(C), pages 258-269.
    16. Elizabeth Delmelle & Isabelle Nilsson, 2020. "New rail transit stations and the out-migration of low-income residents," Urban Studies, Urban Studies Journal Limited, vol. 57(1), pages 134-151, January.
    17. Garcia-López, Miquel-Àngel, 2010. "Population suburbanization in Barcelona, 1991-2005: Is its spatial structure changing?," Journal of Housing Economics, Elsevier, vol. 19(2), pages 119-132, June.
    18. Ulrich B. Morawetz & H. Allen Klaiber, 2022. "Does housing policy impact income sorting near urban amenities? Evidence from Vienna, Austria," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 411-454, October.
    19. Li, Jianyi & Huang, Hao, 2020. "Effects of transit-oriented development (TOD) on housing prices: A case study in Wuhan, China," Research in Transportation Economics, Elsevier, vol. 80(C).
    20. Tornabene, Sara & Nilsson, Isabelle, 2021. "Rail transit investments and economic development: Challenges for small businesses," Journal of Transport Geography, Elsevier, vol. 94(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:100:y:2022:i:c:s0966692322000436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.