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Metro’s night travel offer on the weekend and its impact on house prices

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  • Chang, Zheng
  • Füss, Roland
  • von Möllendorff, Johannes
  • Olaf Olaussen, Jon
  • Weigand, Alois

Abstract

We examine the impact of introducing a weekend metro night service on housing prices in Frankfurt, Germany. Our identification strategy combines a triple-differences design to estimate the average treatment effect on the treated (ATET). We find both statistically and economically significant ATETs. For housing units located within a 300 m distance of the night service trains, housing value experience an average 22 % increase within a one-year period following the schedule change. This is equivalent to an average increase in home value of EUR 109,835 , or a total value appreciation of the nearby housing stock of more than EUR 32 million. Further, we do not find evidence that the night service trains bring negative externalities, such as noise, for units located within 100 m of train stations.

Suggested Citation

  • Chang, Zheng & Füss, Roland & von Möllendorff, Johannes & Olaf Olaussen, Jon & Weigand, Alois, 2023. "Metro’s night travel offer on the weekend and its impact on house prices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
    • Handle: RePEc:eee:transa:v:178:y:2023:i:c:s0965856423003038
    DOI: 10.1016/j.tra.2023.103883
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    More about this item

    Keywords

    House Prices; Night Travel; Noise Externalities; Transportation Infrastructure; Triple Differences Design;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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