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

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  • 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
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    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. Zhao, Yingrui & Hu, Songhua & Zhang, Ming, 2024. "Evaluating equitable Transit-Oriented development (TOD) via the Node-Place-People model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 185(C).
    7. 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.
    8. 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.
    9. 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.

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