01129356

Component

In this paper, we analyze the property value impacts of the Hiawatha Light Rail Line in Minneapolis in terms of the accessibility effect of proximity to LRT station and the nuisance effect of proximity to LRT track. In order to recover the respective proximity effect on sales prices for single-family and multifamily homes, we utilize a spatial hedonic pricing model using data predating construction and postdating completion of the line. Because a four-lane highway and adjacent industrial corridor running parallel to the eastern side of the Hiawatha Line, we expect properties east and west of the LRT line to be affected differently. The findings confirm our expectations about the differential impacts of light rail completion and east-west location. As hypothesized, a significant accessibility effect occurs west of the line as does a significant nuisance effect. Pre- to post-completion comparisons indicate that for single-family homes, the basic accessibility and nuisance effects were in place prior to completion of the LRT line. Completion of the line has enhanced the former and mitigated the latter. For multifamily homes west of the line, the LRT has created an accessibility effect not previously extant. Through comparing our treatment area to a control area to account for recent fluctuations in the housing markets, we are able to recover the housing premiums generated post-completion of the line.

01120148

09-1630

English

19p

2009

Transportation Research Board 88th Annual Meeting

DVD

Figures (3) ; Maps (1) ; References (17) ; Tables (3)

Accessibility; Housing; Light rail transit; Property values; Public transit; Real property; Residential areas; Single family dwellings

Hiawatha Light Rail Line

Proximity

Minneapolis (Minnesota)

Public Transportation; Railroads; Society

Transportation Research Board Annual Meeting 2009 Paper #09-1630

TRIS, TRB

Jan 30 2009 5:52PM