The effect of bus rapid transit on local home prices

Justin Beaudoin and Justin Tyndall

Research in Transportation Economics, 2023, vol. 102, issue C

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 min 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)
Date: 2023
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Working Paper: The Effect of Bus Rapid Transit on Local Home Prices (2023)
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DOI: 10.1016/j.retrec.2023.101370

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