J. Strand et M. Vagnes, The relationship between property values and railroad proximity: a study based on hedonic prices and real estate brokers' appraisals, TRANSPORTAT, 28(2), 2001, pp. 137-156
Citations number
32
Categorie Soggetti
Politucal Science & public Administration","Civil Engineering
We study the relationship between the price of residential property value a
nd proximity to railroads in Oslo, by two different methods, namely a) thro
ugh a hedonic price study where the statistical relationship between proper
ty prices and railroad proximity is estimated, and b) through a multi-attri
bute utility investigation of real estate agents' evaluation of such a rela
tionship. We find in both cases that there are strong effects of proximity
to railroad lines on property prices, at distances less than 100 meters fro
m the lines. In the statistical study log-linear relationships fit the data
best, and our estimates indicate that a doubling of the distance from the
railroad line, within a 100 meter bound, increases the property price by ab
out 10%. With real estate agents only a linear relationship is probed. This
yields an increase in the price of an average relevant housing unit by abo
ut 182,000 NOK, due to a increase in the distance to a railroad track from
20 to 100 meters. The equivalent figure from the statistical study is in th
e range 120-150,000 NOK. The two figures are thus of the same magnitude.