IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v55y2018i13p2960-2979.html
   My bibliography  Save this article

Effects of bus transit-oriented development (BTOD) on single-family property value in Seattle metropolitan area

Author

Listed:
  • Qing Shen

    (University of Washington, USA)

  • Simin Xu

    (University of Washington, USA)

  • Jiang Lin

    (Lawrence Berkeley National Laboratory, USA)

Abstract

Transit-Oriented Development (TOD) is considered to be a powerful model intended to achieve sustainable urban development. A well-designed TOD enhances the accessibility of different kinds of activities, reduces transportation costs and improves the comfort and safety of travel for the neighbourhood as whole, thereby increasing the willingness to pay for real estate properties located nearby. This study examines the housing price premiums of bus transit-oriented development (BTOD), a particular type of TOD that has become quite common in practice, especially in cities where public transportation is provided primarily through a bus system instead of a metro or light rail system. BTOD projects are built at major nodes of a bus network and typically include housing units and commercial services. Our research focuses on four completed BTODs in the Seattle metropolitan area, and employs data on sales prices, physical attributes, neighbourhood characteristics and location features for almost 7000 single-family homes located within a 1.5-mile radius. Using Hedonic price analysis, we find that these BTODs have generated significant positive effects on the values of adjacent homes, especially those located within 0.5 miles. Results from a more sophisticated longitudinal analysis using the data for Renton, one of the BTODs, confirm the price premiums while gaining additional insights about the temporal variations. These findings have an important policy implication, which is especially relevant for cities with an extensive bus transit system: local governments can generate additional tax revenues while advancing sustainability through bus transit-oriented developments.

Suggested Citation

  • Qing Shen & Simin Xu & Jiang Lin, 2018. "Effects of bus transit-oriented development (BTOD) on single-family property value in Seattle metropolitan area," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2960-2979, October.
  • Handle: RePEc:sae:urbstu:v:55:y:2018:i:13:p:2960-2979
    DOI: 10.1177/0042098017729078
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098017729078
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0042098017729078?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. Reid Ewing & Robert Cervero, 2010. "Travel and the Built Environment," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(3), pages 265-294.
    2. Chen, Zhenhua & Haynes, Kingsley E., 2015. "Impact of high speed rail on housing values: an observation from the Beijing–Shanghai line," Journal of Transport Geography, Elsevier, vol. 43(C), pages 91-100.
    3. Munoz-Raskin, Ramon, 2010. "Walking accessibility to bus rapid transit: Does it affect property values? The case of Bogotá, Colombia," Transport Policy, Elsevier, vol. 17(2), pages 72-84, March.
    4. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
    5. Kay, Andrew I. & Noland, Robert B. & DiPetrillo, Stephanie, 2014. "Residential property valuations near transit stations with transit-oriented development," Journal of Transport Geography, Elsevier, vol. 39(C), pages 131-140.
    6. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    7. Andersson, David Emanuel & Shyr, Oliver F. & Fu, Johnson, 2010. "Does high-speed rail accessibility influence residential property prices? Hedonic estimates from southern Taiwan," Journal of Transport Geography, Elsevier, vol. 18(1), pages 166-174.
    8. Yan, Sisi & Delmelle, Eric & Duncan, Michael, 2012. "The impact of a new light rail system on single-family property values in Charlotte, North Carolina," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 5(2), pages 60-67.
    9. Hiroaki Suzuki & Jin Murakami & Yu-Hung Hong & Beth Tamayose, 2015. "Financing Transit-Oriented Development with Land Values : Adapting Land Value Capture in Developing Countries," World Bank Publications - Books, The World Bank Group, number 21286.
    10. 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.
    11. 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.
    12. Seo, Kihwan & Golub, Aaron & Kuby, Michael, 2014. "Combined impacts of highways and light rail transit on residential property values: a spatial hedonic price model for Phoenix, Arizona," Journal of Transport Geography, Elsevier, vol. 41(C), pages 53-62.
    13. McDonald, John F. & Osuji, Clifford I., 1995. "The effect of anticipated transportation improvement on residential land values," Regional Science and Urban Economics, Elsevier, vol. 25(3), pages 261-278, June.
    14. Rodríguez, Daniel A. & Mojica, Carlos H., 2009. "Capitalization of BRT network expansions effects into prices of non-expansion areas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 560-571, June.
    15. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    16. Song, Yan & Knaap, Gerrit-Jan, 2003. "New urbanism and housing values: a disaggregate assessment," Journal of Urban Economics, Elsevier, vol. 54(2), pages 218-238, September.
    17. Mathur, Shishir & Ferrell, Christopher, 2013. "Measuring the impact of sub-urban transit-oriented developments on single-family home values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 42-55.
    18. Bocarejo, Juan Pablo & Portilla, Ingrid & Pérez, Maria Angélica, 2013. "Impact of Transmilenio on density, land use, and land value in Bogotá," Research in Transportation Economics, Elsevier, vol. 40(1), pages 78-86.
    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. Li Yin & Kelly Patterson & Robert Silverman & Laiyun Wu & Hao Zhang, 2022. "Neighbourhood accessibility and walkability of subsidised housing in shrinking US cities," Urban Studies, Urban Studies Journal Limited, vol. 59(2), pages 323-340, February.
    2. Acton, Blake & Le, Huyen T.K. & Miller, Harvey J., 2022. "Impacts of bus rapid transit (BRT) on residential property values: A comparative analysis of 11 US BRT systems," Journal of Transport Geography, Elsevier, vol. 100(C).
    3. Yang, Jiawen & Su, Pinren & Cao, Jason, 2020. "On the importance of Shenzhen metro transit to land development and threshold effect," Transport Policy, Elsevier, vol. 99(C), pages 1-11.
    4. Pawinee Iamtrakul & Sararad Chayphong, 2024. "Exploring Spatial Accessibility to Urban Activities Based on the Transit-Oriented Development Concept in Pathum Thani, Thailand," Sustainability, MDPI, vol. 16(5), pages 1-18, March.
    5. Laura Gabrielli & Aurora Greta Ruggeri & Massimiliano Scarpa, 2023. "“Location, Location, Location”: Fluctuations in Real Estate Market Values after COVID-19 and the War in Ukraine Based on Econometric and Spatial Analysis, Random Forest, and Multivariate Regression," Land, MDPI, vol. 12(6), pages 1-23, June.
    6. Yuchen Zhou & Yuhong Tian & Chi Yung Jim & Xu Liu & Jingya Luan & Mengxuan Yan, 2022. "Effects of Public Transport Accessibility and Property Attributes on Housing Prices in Polycentric Beijing," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    7. Qingchun Liu & Peixiong Zhao & Yan Xiao & Xin Zhou & Jun Yang, 2022. "Walking Accessibility to the Bus Stop: Does It Affect Residential Rents? The Case of Jinan, China," Land, MDPI, vol. 11(6), pages 1-17, June.
    8. Jianming Zhang & Jun Cai & Mengjia Wang & Wansong Zhang, 2024. "An Estimation Method for Passenger Flow Volumes from and to Bus Stops Based on Land Use Elements: An Experimental Study," Land, MDPI, vol. 13(7), pages 1-18, July.

    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. 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.
    2. Zhang, Min, 2023. "Value uplift from transit investment-Property value or land value? A case study of the Gold Coast light rail system in Australia," Transport Policy, Elsevier, vol. 132(C), pages 88-98.
    3. Mitra, Suman K. & Saphores, Jean-Daniel M., 2016. "The value of transportation accessibility in a least developed country city – The case of Rajshahi City, Bangladesh," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 184-200.
    4. 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.
    5. Acton, Blake & Le, Huyen T.K. & Miller, Harvey J., 2022. "Impacts of bus rapid transit (BRT) on residential property values: A comparative analysis of 11 US BRT systems," Journal of Transport Geography, Elsevier, vol. 100(C).
    6. 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.
    7. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    8. Huang, Zhonghua & Du, Xuejun, 2021. "How does high-speed rail affect land value? Evidence from China," Land Use Policy, Elsevier, vol. 101(C).
    9. Guzman, Luis A. & Enríquez, Hernán Darío & Hessel, Phillip, 2021. "BRT system in Bogotá and urban effects: More residential land premiums?," Research in Transportation Economics, Elsevier, vol. 90(C).
    10. Welch, Timothy F. & Gehrke, Steven R. & Wang, Fangru, 2016. "Long-term impact of network access to bike facilities and public transit stations on housing sales prices in Portland, Oregon," Journal of Transport Geography, Elsevier, vol. 54(C), pages 264-272.
    11. Jonas Eliasson & Fredrik Kopsch & Svante Mandell & Mats Wilhelmsson, 2020. "Transport Mode and the Value of Accessibility–A Potential Input for Sustainable Investment Analysis," Sustainability, MDPI, vol. 12(5), pages 1-14, March.
    12. 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).
    13. Yang, Linchuan & Chu, Xiaoling & Gou, Zhonghua & Yang, Hongtai & Lu, Yi & Huang, Wencheng, 2020. "Accessibility and proximity effects of bus rapid transit on housing prices: Heterogeneity across price quantiles and space," Journal of Transport Geography, Elsevier, vol. 88(C).
    14. Papon, Francis & Nguyen-Luong, Dany & Boucq, Elise, 2015. "Should any new light rail line provide real estate gains, or not? The case of the T3 line in Paris," Research in Transportation Economics, Elsevier, vol. 49(C), pages 43-54.
    15. 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.
    16. 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.
    17. Patricia Yañez-Pagans & Daniel Martinez & Oscar A. Mitnik & Lynn Scholl & Antonia Vazquez, 2019. "Urban transport systems in Latin America and the Caribbean: lessons and challenges," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-25, December.
    18. Cervero, Robert & Dai, Danielle, 2014. "BRT TOD: Leveraging transit oriented development with bus rapid transit investments," Transport Policy, Elsevier, vol. 36(C), pages 127-138.
    19. Yuxiang Wang & Xueli Liu & Feng Wang, 2018. "Economic Impact of the High-Speed Railway on Housing Prices in China," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    20. Mulley, Corinne & Tsai, Chi-Hong (Patrick), 2016. "When and how much does new transport infrastructure add to property values? Evidence from the bus rapid transit system in Sydney, Australia," Transport Policy, Elsevier, vol. 51(C), pages 15-23.

    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:sae:urbstu:v:55:y:2018:i:13:p:2960-2979. 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: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    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.