Abstract:
The corridor-level impact of a recent major urban highway reconstruction project on residential property values is investigated. The housing market encompassing the North Central Expressway corridor in Dallas, Texas, is examined. Hedonic property price models are estimated for each specific phase of the reconstruction project between 1979 and 1997. Five phases are considered. Geographic information system (GIS) tools, like buffering and geocoding, enable spatial segmentation of property sales and improved model specification facilitated by the creation of different types of proximity variables. An econometric refinement is made to traditional hedonic models that, in conjunction with GIS, allows an examination of spatiotemporal fluctuations in location premiums and property-value trends. The results show that some parts are negatively affected and others are positively affected. This finding is in agreement with the findings of earlier studies. However, this study adds to this conclusion in many ways. The planning process itself mildly affected premiums for those further away. The short-term reconstruction effects are limited to those properties in the immediate vicinity. The results show that the losses in terms of sales discounts during initial phases of construction are made up in the latter phases for those in the immediate vicinity and rebounding property values. The analysis concludes by suggesting that the cost of increased data requirements is outweighed by the informational advantages of the adopted procedure.
