| Annotated Bibliography |
STUDY (FULL REFERENCE)
Gatzlaff, D. and Smith, M.T. (1993). The Impact of the Miami Metrorail on the Value of Residences Near Station
Locations. Land Economics, 69(1): 54-66.
TECHNIQUE
Hedonic Pricing
FOCUS AND LOCATION
Impact of the Miami Metrorail system on residential property values near station locations
SITE & SOCIOECONOMIC CHARACTERISTICS
Miami Metrorail is a 21 mile heavy rail system, opened in 1984. The system was announced in 1980.There are 21 stations
along the line: those north of the line of the CBS are located in areas of economic decline, while those located south of
the CBD are in more economically stable areas.
8 stations were included in the data set (four north of the CBD, four south of CBD).
Ridership is 15% of that expected, approx 50,000 trips per weekday. Average fare in $1988 is $0.82.
KEY RESULTS
HEDONIC PRICE RELATIONSHIP
Residential values were, at most, only weakly impacted by the announcement of the new rail system. If at all, the
capitalisation of the accessibility benefits of the system were greater to higher-income households.
The repeat sales index of properties near the stations was not significantly different from the metropolitan wide index
during any period of the 18 year estimate.
The hedonic regression analysis showed the impact of the rail development announcement on residential property values
was weak. The impact did not appear to vary significantly by property distance from the station.
COMMENTS/SUMMARY
The authors used two approaches to investigate the impact of the announcement of the Metrorail system on residential
property values. Property sales data for eight stations along the 21 station line were analysed. One method used an index
of repeat sales, comparing properties near the stations with metropolitan wide sales. The indices were not significantly
different. The second method was a hedonic regression of properties to quantify price changes relative to the
announcement of the system. The impact was very weak. It did not appear to vary significantly by property distance from
the station. Also, the impact varied by neighbourhood type. The announcement weakly increased the value of existing
properties near stations in higher-priced neighbourhoods experiencing growth, and decreased value in less affluent,
declining areas.
RELATED/OTHER STUDIES
The authors cite several other studies on monetary impact of rail transit on property values including :
Bajic, V. (1983) The effects of a new subway line on housing prices in metropolitan Toronto, Urban Studies 2: 147-158.
Voith, R. (1991) Transportation, sorting and house values, Journal of the American Real Estate and Urban Economics
Association 19: 117-137.
|
|
