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The Impact of Rail Transport on Real Estate Prices: An Empirical Analysis of the Dutch Housing Market

Author

Listed:
  • Ghebreegziabiher Debrezion

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Eric Pels

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Piet Rietveld

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

A hedonic pricing model is estimated to analyse the impact of railways on house prices in terms of distance to railway station, frequency of railway services and distance to the railway line. Correcting for a wide range of other determinants of house prices we find that dwellings very close to a station are on average about 25% more expensive than dwellings at a distance of 15 kilometres or more. A doubling of frequency leads to an increase of house values of about 2.5%, ranging from 3.5% for houses close to the station to 1.3% for houses far away. Finally we find a negative effect of distance to railways, probably due to noise effects. Two railway station references were used in the analysis: the nearest and most frequently chosen station in the post code area. This distinction indicates that railway station accessibility is a more complex concept than one might think. It involves competition between railway stations.

Suggested Citation

  • Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2006. "The Impact of Rail Transport on Real Estate Prices: An Empirical Analysis of the Dutch Housing Market," Tinbergen Institute Discussion Papers 06-031/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20060031
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    References listed on IDEAS

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    1. Richard Voith, 1991. "Transportation, Sorting and House Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(2), pages 117-137, June.
    2. Smith, V Kerry & Huang, Ju-Chin, 1995. "Can Markets Value Air Quality? A Meta-analysis of Hedonic Property Value Models," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 209-227, February.
    3. Voith Richard, 1993. "Changing Capitalization of CBD-Oriented Transportation Systems: Evidence from Philadelphia, 1970-1988," Journal of Urban Economics, Elsevier, vol. 33(3), pages 361-376, May.
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    More about this item

    Keywords

    property value; railway station; accessibility; hedonic pricing method;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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