Expected transport accessibility improvement and house prices: Evidence from the construction of an undersea road tunnel system

Štěpán Mikula and Peter Molnár

Journal of Transport Geography, 2023, vol. 111, issue C

Abstract: This paper studies the impact of expected transport accessibility improvement on house prices. We identify the effect exploiting a quasi-natural experiment created by the approval and construction of the Ryfast tunnel system in Rogaland, Norway, which shortened the traveling time to the affected municipality from 62 to 24 min. Estimates of a repeated sales model in a difference-in-differences framework show that the expectation of improvement in transport accessibility connected with the construction of the tunnel system led to an increase in house prices by 12.8% on average. That effect grew as the opening of the tunnel drew closer and was driven by less valuable houses.

Keywords: Transport accessibility; Expectations; House prices; Ryfast tunnel system construction; Norway (search for similar items in EconPapers)
JEL-codes: R3 R4 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jotrge:v:111:y:2023:i:c:s0966692323001217

DOI: 10.1016/j.jtrangeo.2023.103649

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