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Comparing the Capitalisation Benefits of Light-rail Transit and Overlay Zoning for Single-family Houses and Condos by Neighbourhood Type in Metropolitan Phoenix, Arizona

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  • Carol Atkinson-Palombo

    (Department of Geography, University of Connecticut, 215 Glenbrook Road, Storrs, Connecticut, 06269-4148 USA, carol.atkinson-palombo@uconn.edu)

Abstract

Light rail transit (LRT) is increasingly accompanied by overlay zoning which specifies the density and type of future development to encourage landscapes conducive to transit use. Neighbourhood type (based on land use mix) is used to partition data and investigate how pre-existing land use, treatment with a park-and-ride (PAR) versus walk-and-ride (WAR) station and overlay zoning interrelate. Hedonic models estimate capitalisation effects of LRT-related accessibility and overlay zoning on single-family houses and condos in different neighbourhoods for the system in metropolitan Phoenix, Arizona. Impacts differ by housing and neighbourhood type. Amenity-dominated mixed-use neighbourhoods—predominantly WAR communities—experience premiums of 6 per cent for single-family houses and over 20 per cent for condos, the latter boosted an additional 37 per cent by overlay zoning. Residential neighbourhoods—predominantly PAR communities—experience no capitalisation benefits for single-family houses and a discount for condos. The results suggest that land use mix is an important variable to select comparable neighbourhoods.

Suggested Citation

  • Carol Atkinson-Palombo, 2010. "Comparing the Capitalisation Benefits of Light-rail Transit and Overlay Zoning for Single-family Houses and Condos by Neighbourhood Type in Metropolitan Phoenix, Arizona," Urban Studies, Urban Studies Journal Limited, vol. 47(11), pages 2409-2426, October.
    • Handle: RePEc:sae:urbstu:v:47:y:2010:i:11:p:2409-2426
    DOI: 10.1177/0042098009357963
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    4. Boarnet, Marlon G & Bostic, Raphael & Williams, Danielle & Santiago-Bartolomei, Raul & Rodnyansky, Seva & Eisenlohr, Andy, 2017. "Affordable Housing in Transit-Oriented Developments: Impacts on Driving and Policy Approaches," Institute of Transportation Studies, Working Paper Series qt487994z4, Institute of Transportation Studies, UC Davis.
    5. McIntosh, James & Trubka, Roman & Newman, Peter, 2014. "Can value capture work in a car dependent city? Willingness to pay for transit access in Perth, Western Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 320-339.
    6. Duncan, Michael, 2019. "Would the replacement of park-and-ride facilities with transit-oriented development reduce vehicle kilometers traveled in an auto-oriented US region?," Transport Policy, Elsevier, vol. 81(C), pages 293-301.
    7. Aliyu Ahmad Aliyu & Olurotimi Adebowale Kemiki & Muhammad Umar Bello, 2018. "Transportation Accessibility Benefit and the Dynamic Pattern of Real Estate Prices: Emerging Literature," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(11), pages 1001-1016, November.
    8. Sharma, Rohit & Newman, Peter, 2018. "Does urban rail increase land value in emerging cities? Value uplift from Bangalore Metro," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 70-86.
    9. 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.
    10. Wagner, Gary A. & Komarek, Timothy & Martin, Julia, 2017. "Is the light rail “Tide” lifting property values? Evidence from Hampton Roads, VA," Regional Science and Urban Economics, Elsevier, vol. 65(C), pages 25-37.
    11. 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.
    12. Boarnet, Marlon G. & Bostic, Raphael W. & Burinskiy, Evgeniy & Rodnyansky, Seva & Prohofsky, Allen, 2018. "Gentrification Near Rail Transit Areas: A Micro-Data Analysis of Moves into Los Angeles Metro Rail Station Areas," Institute of Transportation Studies, Working Paper Series qt4p4584w8, Institute of Transportation Studies, UC Davis.
    13. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    14. Nilsson, Isabelle & Delmelle, Elizabeth, 2018. "Transit investments and neighborhood change: On the likelihood of change," Journal of Transport Geography, Elsevier, vol. 66(C), pages 167-179.
    15. Shengxiao Li & Luoye Chen & Pengjun Zhao, 2019. "The impact of metro services on housing prices: a case study from Beijing," Transportation, Springer, vol. 46(4), pages 1291-1317, August.
    16. Aliyu Ahmad Aliyu & Olurotimi Adebowale Kemiki & Muhammad Umar Bello, 2018. "Analysis of Current Empirical Studies on Transport Value-Added Effect and Proximate Housing Price Capture," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(12), pages 1001-1020, December.
    17. Ke, Yue & Gkritza, Konstantina, 2019. "Light rail transit and housing markets in Charlotte-Mecklenburg County, North Carolina: Announcement and operations effects using quasi-experimental methods," Journal of Transport Geography, Elsevier, vol. 76(C), pages 212-220.
    18. Bardaka, Eleni & Delgado, Michael S. & Florax, Raymond J.G.M., 2019. "A spatial multiple treatment/multiple outcome difference-in-differences model with an application to urban rail infrastructure and gentrification," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 325-345.
    19. Higgins, Christopher D. & Kanaroglou, Pavlos S., 2016. "A latent class method for classifying and evaluating the performance of station area transit-oriented development in the Toronto region," Journal of Transport Geography, Elsevier, vol. 52(C), pages 61-72.
    20. Duncan, Michael & Christensen, Robert K., 2013. "An analysis of park-and-ride provision at light rail stations across the US," Transport Policy, Elsevier, vol. 25(C), pages 148-157.

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