Still prefer, but not that much: the premium of subway access on house prices during the COVID-19 pandemic period

Rail access has traditionally been considered a factor that enhances the amenity value of urban areas, resulting in a price premium for properties located near these stations. However, the Covid-19 pandemic has exerted a profound influence on people's mobility patterns and travel behavior within urban areas. One of the most conspicuous changes is a substantial decrease in subway ridership. This study investigates whether the decline in public transit ridership has led to shifts in housing location preferences driven by proximity to rail access during the Covid-19 pandemic. This study focuses on assessing the impact of the pandemic on the premium associated with rail access in relation to house prices. Using approximately 180,000 apartment transaction records from Seoul, South Korea, the empirical findings, based on a difference-in-differences approach, reveal an immediate and significant depreciation effect resulting from this exogenous shock during the 25-month pandemic period. The premium decreases significantly within a 1.2-kilometer radius from a subway station, and this reduction exhibits a distance-decay pattern within the designated area. HighlightsTraditional amenity value of rail access challenged by Covid-19.Profound decline in subway ridership during pandemic.Investigation into pandemic's impact on housing location preferences.Assessment of pandemic's effect on rail access premium.Immediate and significant depreciation effect within 1.2 km from subway stations.