The Influence of Public Transportation on Housing Values – A Hedonic Estimation

by Dr. Erin A. Hopkins, Ph.D.

Virginia Tech

113 Wallace Hall (0410)

Blacksburg, VA 24061

540-231-6282 - phone

540-231-1697 - fax

erinzl@vt.edu

 

Abstract

Transit-oriented development is becoming an increasingly common development strategy with potential consequences on property values. This study explores the potential relationship between the proximity to public transportation and housing values. The objective is achieved by performing a hedonic regression using the 2013 American Housing Survey (AHS) sample, which includes 25 metro areas. In 2013, the AHS added a topical supplement addressing public transportation issues which makes understanding public transportation impacts on housing values more feasible. In this study, being located within half a mile of a public transportation stop was not a significant factor in explaining housing values. This finding refutes previous studies which show proximity to a public transportation stop as a significant influence on housing values. This research is important to real estate practitioners operating within transit-oriented development as proximity to public transportation may not significantly influence property values.


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