Evaluation of transit proximity effects on residential land prices: an empirical study in Austin, Texas

Abstract

The Austin MetroRail line in Texas, U.S.A. began operations in 2010 and since then transit-oriented development projects have been fuelled around train stations. Traditional location theory holds that proximity to a transit station should be capitalized into land prices, and numerous empirical studies have demonstrated the effects with mixed results. However, to date no empirical study has investigated this relationship between the newly built rail line and land prices in Austin. This study fills the research gap and suggests a positive effect associated with transit proximity by employing spatial hedonic models. This study also contributes to the existing literature especially in the context of Texas cities where there is a lack of relevant research on transit-capitalization-related topics, and provides insights for decision-makers with different perspectives regarding further rail investment or transportation financing strategies such as value capture programs.