Connected or Disturbed? Effects of Freeways on Housing Prices

Marcelo Alvez
Additional contact information
Marcelo Alvez: Arizona State University

No 377, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: Transportation networks facilitate connectivity, which reduces trade costs and travel time. However, transportation infrastructure also generates dis-amenities, such as noise and air pollution. I apply a spatial difference-in-differences strategy to estimate capitalization effects of a new freeway in Phoenix, Arizona, and decompose the net effect into its accessibility and disamenity components. The new freeway reduced nearby housing prices by 12% after its announcement and by a total of 20% after it became operational. These effects diminish with distance from the freeway, and accessibility gains can mitigate the negative capitalization by more than 10 percentage points. The evidence indicates that, while new freeways improve connectivity, locally their disamenities can dominate the net capitalization effect.

Keywords: house prices; transportation; place-based interventions; hedonic (search for similar items in EconPapers)
JEL-codes: H54 O18 R31 R40 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2025-11
References: Add references at CitEc
Citations:

Downloads: (external link)
https://rednie.eco.unc.edu.ar/files/DT/377pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
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:aoz:wpaper:377

Access Statistics for this paper

More papers in Working Papers from Red Nacional de Investigadores en Economía (RedNIE) Contact information at EDIRC.
Bibliographic data for series maintained by Laura Inés D Amato ().