If We Build it, Will They Pay? Predicting Property Price Effects of Transport Innovations

Gabriel Ahlfeldt

Environment and Planning A, 2013, vol. 45, issue 8, 1977-1994

Abstract: In this study I apply a gravity-type labor-market accessibility model to the Greater London Area to investigate house price capitalization effects. The spatial scope of labor-market effects is found to be about 60 minutes. Doubling accessibility increases the utility of an average household by about 12%. I combine the gravity approach with a transport decision model that takes into account the urban rail network architecture, allows for mode switching, and thus accounts for the effective accessibility offered by a station, to predict the property price effects of the 1999 Jubilee Line and DLR extension. A considerable degree of heterogeneity is predicted both in terms of the magnitude as well as the spatial extent of price effects around new stations. A quasi-experimental property price analysis reveals that the model performs well in predicting the effective capitalization effects, suggesting that the approach might be a viable ingredient in transport planning.

Keywords: property prices; hedonic analysis; transport innovations; gravity equation (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1068/a45429 (text/html)

Related works:
Working Paper: If we build it, will they pay? Predicting property price effects of transport innovations (2013)
Working Paper: If We Build, Will They Pay? Predicting Property Price Effects of Transport Innovations (2011)
Working Paper: If we build, will they pay?: predicting property price effects of transport innovations (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:45:y:2013:i:8:p:1977-1994

DOI: 10.1068/a45429

Access Statistics for this article

More articles in Environment and Planning A
Bibliographic data for series maintained by SAGE Publications ().