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Title:

Impacts of Average Commuting Time on Housing Prices in Texas Suburban Cities

Accession Number:

01516475

Record Type:

Component

Availability:

Transportation Research Board Business Office

500 Fifth Street, NW
Washington, DC 20001 United States

Abstract:

The transportation cost is a very important factor that impacts land and house values in urban areas. In a classical monocentric city model, residents who work in the Central Business District (CBD) face a trade-off between rent and distance to the CBD. By considering the impact of transportation costs, real estates in or close to city center will be able to command a higher rent in equilibrium than those at the suburban areas. This paper uses real data from an online real estate database as examples to illustrate how the average commuting time affects the housing price in suburban cities in Texas (including Houston, Dallas-Fort Worth, San Antonio, and Austin). Relationships between the “median list price” and “average commuting time”, after controlling family characteristics such as “median household income”, are established. For example in cities with population between 15,000 and 1,000,000, the increase of one additional minute of average commuting time will be associated with 1.9 dollars less housing price per square foot (p-value: 0.038). The authors also discuss the social cost of urban sprawl when residents make use of lower housing cost in suburban cities and spend more time commuting to work. The incurred cost in the form of significant vehicle emission and highway congestion has important policy implications. The analytical framework and results in this paper could be references for research and practices in land use, transportation economics, transportation planning, transportation impact analyses, and real estate markets.

Supplemental Notes:

This paper was sponsored by TRB committee ADD10 Transportation and Economic Development.

Monograph Accession #:

01503729

Report/Paper Numbers:

14-1754

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Qiao, Fengxiang
Liu, Ling
Long, Wen
Yu, Lei

Pagination:

20p

Publication Date:

2014

Conference:

Transportation Research Board 93rd Annual Meeting

Location: Washington DC
Date: 2014-1-12 to 2014-1-16
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; Maps; References; Tables

Geographic Terms:

Texas

Subject Areas:

Economics; Highways; I10: Economics and Administration

Source Data:

Transportation Research Board Annual Meeting 2014 Paper #14-1754

Files:

TRIS, TRB, ATRI

Created Date:

Jan 27 2014 2:38PM