Hedonic Price Effects of Pedestrian- and Transit-Oriented Development

Hedonic Price Effects of Pedestrian- and Transit-Oriented Development

There is a growing market for pedestrian- and transit-oreinted development. This article outlines existing literature in order to assess how increased demand for these types of developments is impacting land value. It also includes suggestions for further research on the topic.

"Recent consumer surveys and demographic analyses have indicated a growing market for pedestrian- and transit-designed development. Theoretically, this market shift should be reflected in the price people are willing to pay for those styles of development. This article traces the literature that uses hedonic price methods for testing this hypothesis, either by assessing pedestrian/transit-design development holistically or by evaluating its component parts. The literature confirms that the market shift is, indeed, being capitalized into real estate prices and demonstrates that the amenity-based elements of transit-designed development play an important positive role in urban land markets, independent of the accessibility benefits provided by transit."

Key findings

"The hedonic price literature confirms that the market shifts in favor of pedestrian- and transit-designed development indicated by survey data and demographic analyses are, indeed, being capitalized into real estate prices."

"The literature also demonstrates that the amenity-based elements of transit-designed development play an important positive role in urban land markets, in addition to the accessibility benefits provided by transit."

"Findings tend to validate the distinctions others have made between transit oriented and transit-adjacent development and suggests that planners, elected officials, transit agencies, and developers pay closer attention to the nontransit, amenity-based elements of land developments proximate to transit facilities."

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