The Effect of Bus Rapid Transit on Local Home Prices

Justin Beaudoin () and Justin Tyndall
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Justin Beaudoin: Department of Economics, Acadia University

No 2023-3, Working Papers from University of Hawaii Economic Research Organization, University of Hawaii at Manoa

Abstract: Bus Rapid Transit (BRT) systems have become increasingly common in US cities. BRT stations provide a local amenity by improving transportation options for local residents, but may also represent a local nuisance due to noise or displacement of other road users. We estimate whether BRT is priced into local real estate by studying a recently opened BRT project in Vancouver, Washington. We use a difference-in-difference method with both hedonic and repeat sales estimators to test for a price effect. We estimate a 5-7% price premium for homes located within a 20 minute walk of a BRT station. Overall, BRT generated new real estate value that exceeded the project’s construction costs by a factor of six. We discuss how government could leverage future residential property value increases to fund construction of BRT projects.

Keywords: Transportation; Transit; Bus Rapid Transit; Real Estate (search for similar items in EconPapers)
JEL-codes: R30 R32 R38 R40 R42 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2023-08
New Economics Papers: this item is included in nep-mac, nep-ppm, nep-tre and nep-ure
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https://uhero.hawaii.edu/wp-content/uploads/2024/01/UHEROwp2303.pdf First version, 2023 (application/pdf)

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Journal Article: The effect of bus rapid transit on local home prices (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hae:wpaper:2023-3

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