Land economic impact of fixed guideway rapid transit systems on urban development in selected metropolitan areas : the issue of the price-distance gradients

Abstract

This research investigates and evaluates the impact of rapid-transit systems on land values in the vicinity of transit stations in large metropolitan areas. The data is based on ad valorem tax assessment before and after implementation of rapid transit systems. Review of pertinent literature including literature of joint-development projects, indicates that no study has examined the direct impact of transit systems on land values. Five North American fixed-guideway rapid-transit stations were selected for a detailed study. Four were in the METRO Rosslyn Corridor in Arlington, Virginia. The fifth was in Atlanta, Georgia. The Bay Area Rapid Transit system in San Francisco, and the Toronto Metro system in Canada were also examined using previous data. A comprehensive evaluation of the impact of these systems on land values near selected stations was undertaken. The research-evaluation methodology introduced in a similar study by Hoyt (1933) was used in this study. Findings from this study indicate that fixed-guideway, rapid-transit systems have a strong positive impact on land values. Factors other than transit facilities, however, contribute to the increase of property values near the stations. A statistical model using regression techniques was devised to show the pattern of land-value changes near fixed-guideway, rapid-transit stations. Price flexibility of distance ε[fd] concept was also used to measure the percentage change in the price of land with respect to change in land distance from a development area.