Bus Rapid Transit (BRT) has been increasingly popular recently. This study compiles longitudinal house transaction data and carries out two natural experiments in El Paso, TX, to explore the effect of BRT stations on residential property values. A synthetic control methodology, which creates counterfactual groups for identifying matching controls, has been used. Transportation corridors are used as our spatial control pool. The results reveal a significant variation in the impact of BRTs on housing prices even within the same City. It appears that BRT may have greater benefits in lower-income neighborhoods and less popular housing markets.
AbadieA.2021. “Using Synthetic Controls: Feasibility, Data Requirements, and Methodological Aspects.” Journal of Economic Literature59 (2): 391–425.
2.
AbadieA.DiamondA.HainmuellerJ.2010. “Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program.” Journal of the American Statistical Association105 (490): 493–505.
3.
AbadieA.DiamondA.HainmuellerJ.2015. “Comparative Politics and the Synthetic Control Method.” American Journal of Political Science59 (2): 495–510.
4.
ActonB.LeH. T.MillerH. J.2022. “Impacts of Bus Rapid Transit (BRT) on Residential Property Values: A Comparative Analysis of 11 US BRT Systems.” Journal of Transport Geography100:103324.
5.
AllanssonJ.Pettersson-LöfstedtF.HreljaR.2023. “Collaborative Challenges and Barriers When Planning and Implementing Bus Rapid Transit (BRT).” Lessons from Swedish BRT Projects. Urban, Planning and Transport Research11 (1): 2246530.
6.
AlQuhtaniS.AnjomaniA.2019. “Do Rail Transit Stations Affect Housing Value Changes? The Dallas Fort-Worth Metropolitan Area Case and Implications.” Journal of Transport Geography79:102463.
7.
AtheyS.ImbensG. W.2017. “The State of Applied Econometrics: Causality and Policy Evaluation.” Journal of Economic Perspectives31 (2): 3–32.
BasheerM. A.BoelensL.BijlR. V. D.2020. “Bus Rapid Transit System: A Study of Sustainable Land-Use Transformation, Urban Density and Economic Impacts.” Sustainability12 (8): 3376.
10.
BocarejoS.RicardoJ. DanielPabloOviedo H.2012. “Transport Accessibility and Social Inequities: A Tool for Identification of Mobility Needs and Evaluation of Transport Investments.” Journal of Transport Geography24:142–54.
11.
BonanderC.HumphreysD.EspostiM. Degli. 2021. “Synthetic Control Methods for the Evaluation of Single-Unit Interventions in Epidemiology: A Tutorial.” American Journal of Epidemiology190 (12): 2700–11.
CaoX. J.SchonerJ.2014. “The Influence of Light Rail Transit on Transit Use: An Exploration of Station Area Residents Along the Hiawatha Line in Minneapolis.” Transportation Research Part A: Policy and Practice59:134–43.
14.
CardD.KruegerA. B.1993. “Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania.” https://www.nber.org/papers/w4509
15.
CerveroR.KangC. D.2011. “Bus Rapid Transit Impacts on Land Uses and Land Values in Seoul, Korea.” Transport Policy18 (1): 102–16.
16.
ChenQ.YanG.2023. “A Mixed Placebo Test for Synthetic Control Method.” Economics Letters224:111004.
DubéJ.Des RosiersF.ThériaultM.DibP.2011. “Economic Impact of a Supply Change in Mass Transit in Urban Areas: A Canadian Example.” Transportation Research Part A: Policy and Practice45 (1): 46–62.
21.
El Paso Central Appraisal District. 2023. “El Paso Central Appraisal District Open Government.” https://epcad.org/OpenGovernment.
22.
FalcocchioJ. C. G.MalikA.KontokostaC. E.2018. “A Data-Driven Methodology for Equitable Value-Capture Financing of Public Transit Operations and Maintenance.” Transport Policy66:107–15.
23.
GharehgozliO.2017. “An Estimation of the Economic Cost of Recent Sanctions on Iran Using the Synthetic Control Method.” Economics Letters157:141–44.
24.
GhoshC.PanchapagesanV.VenkataramanM.2024. “On the Impact of Infrastructure Improvement on Real Estate Property Values: Evidence from a Quasi-natural Experiment in an Emerging Market.” The Journal of Real Estate Finance and Economics68:103–137.
HeadM. L.HolmanL.LanfearR.KahnA. T.JennionsM. D.2015. “The Extent and Consequences of p-Hacking in Science.” PLoS Biology13 (3): e1002106.
27.
HessD. B.AlmeidaT. M.2007. “Impact of Proximity to Light Rail Rapid Transit on Station-Area Property Values in Buffalo, New York.” Urban Studies44 (5-6): 1041–68.
28.
IaconoM.LevinsonD.2017. “Accessibility Dynamics and Location Premia: Do Land Values Follow Accessibility Changes?”Urban Studies54 (2): 364–81.
29.
IbeasÁ.CorderaR.Dell’OlioL.CoppolaP.DominguezA.2012. “Modelling Transport and Real-Estate Values Interactions in Urban Systems.” Journal of Transport Geography24:370–82.
30.
IngvardsonJ. B.NielsenO. A.2018. “Effects of New Bus and Rail Rapid Transit Systems–An International Review.” Transport Reviews38 (1): 96–116.
31.
KasraianD.LiL.RaghavS.ShalabyA.MillerE. J.2023. “Regional Transport Accessibility and Residential Property Values: The Case Study of the Greater Toronto and Hamilton area.” Case Studies on Transport Policy11:100932.
32.
KingG.ZengL.2006. “The Dangers of Extreme Counterfactuals.” Political Analysis14 (2): 131–59.
LovingA. C.FinkeM. S.SalterJ. R.2012. “Does Home Equity Explain the Black Wealth Gap?”Journal of Housing and the Built Environment27:427–51.
35.
Maeso-GonzálezE.Pérez-CerónP.2014. “State of Art of Bus Rapid Transit Transportation.” European Transport Research Review6 (2): 149–56.
36.
NelsonA. C.AppleyardB.KannanS.EwingR.MillerM.EskicD.2013. “Bus Rapid Transit and Economic Development: Case Study of the Eugene-Springfield BRT system.” Journal of Public Transportation16 (3): 41–57.
37.
OnyejiakaJ. C.OkpalaC. A.2020. “The Contributions of Urban Infrastructure to Residential Real Estate Investment Value in Awka, Anambra State.” British Journal of Environmental Sciences8 (3): 13–32.
38.
PáezA.ScottD. M.MorencyC.2012. “Measuring Accessibility: Positive and Normative Implementations of Various Accessibility Indicators.” Journal of Transport Geography25:141–53.
39.
PanQ.2019. “The Impacts of Light Rail on Residential Property Values in a Non-Zoning City.” Journal of Transport and Land Use12 (1): 241–64.
40.
PerkV.BovinoS.CataláM.ReaderS.UlloaS. (2013). ‘Silver Line bus rapid transit in Boston, Massachusetts: impacts on sale prices of condominiums along Washington Street’, Transportation Research Record2350: 72–79.
41.
PerkV. A.CatalaM.2009. Land Use Impacts of Bus Rapid Transit: Effects of BRT Station Proximity on Property Values along the Pittsburgh Martin Luther King, Jr. East Busway. https://trid.trb.org/view/1401767.
42.
PilgramC. A.WestS. E.2018. “Fading Premiums: The Effect of Light Rail on Residential Property Values in Minneapolis, Minnesota.” Regional Science and Urban Economics69:1–10.
43.
Poku-BoansiM.MarsdenG.2018. “Bus Rapid Transit Systems as a Governance Reform Project.” Journal of Transport Geography70:193–202.
44.
RansomM. R.2018. “The effect of Light Rail Transit Service on Nearby Property Values.” Journal of Transport and Land Use11 (1): 387–404.
RosenS.1974. “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition.” Journal of Political Economy82 (1): 34–55.
48.
SagarisL.2021. “Community participation in public transport decision-making. In The Routledge Handbook of Public Transport, edited By MulleyCorinneNelsonJohnIsonppStephen, 107–122. Abingdon: Routledge.
49.
SalonD.WuJ.ShewmakeS.2014. “Impact of Bus Rapid Transit and Metro Rail on Property Values in Guangzhou, China.” Transportation Research Record2452 (1): 36–45.
50.
SmithJ. J.GihringT. A.2006. “Financing Transit Systems Through Value Capture: An Annotated Bibliography.” American Journal of Economics and Sociology65 (3): 751–86.
51.
SongY.WeiQ.2024. “Impact of Apparent Temperatures on Park Visitation Behavior: A Comprehensive Analysis Using Large-Scale Mobility Data.” Science of the Total Environment940:173388.
52.
SongY.ZhongS.LeeC.XuM.2023. “Causal Effect of New Bus Rapid Transit on Non-Work-Related Activities.” Journal of Planning Education and Research, X. Published electronically August 23. doi:10.1177/0739456X231192022.
TirumalaR. D.2022. “The Confluence of Real Estate and Infrastructure: A Research Agenda.” In A Research Agenda for Real Estate, edited by TiwariPiyushMiaoJulie T. 165–80. Cheltenham: Edward Elgar.
55.
TrubiaS.SeverinoA.CurtoS.ArenaF.PauG.2020. “On BRT Spread Around the World: Analysis of Some Particular Cities.” Infrastructures5 (10): 88.
56.
United Nations Human Settlements Programme. 2013. Planning and Design for Sustainable Urban Mobility: Policy Directions: Global Report on Human Settlements 2013. London: Routledge.
57.
VenterC.JenningsG.HidalgoD.PinedaA. F. Valderrama. 2018. “The Equity Impacts of Bus Rapid Transit: A Review of the Evidence and Implications for Sustainable Transport.” International Journal of Sustainable Transportation12 (2): 140–52.
58.
VerheuvelN.WittemanJ.VlaanderenM.2023. “Synthetic Control Method for Dutch Policy Evaluation.” De Economist171 (1): 51–83.
59.
WelchT. F.2013. “Equity in Transport: The Distribution of Transit Access and Connectivity Among Affordable Housing Units.” Transport Policy30:283–93.
60.
YanS.DelmelleE.DuncanM.2012. “The Impact of a New Light Rail System on Single-Family Property Values in Charlotte, North Carolina.” Journal of Transport and Land Use5 (2): 60–67.
61.
YangL.ChauK. W.SzetoW. Y.CuiX.WangX.2020. “Accessibility to Transit, by Transit, and Property Prices: Spatially Varying Relationships.” Transportation Research Part D: Transport and Environment85:102387.
62.
YangL.ZhouJ.ShyrO. F.2019. “Does Bus Accessibility Affect Property Prices?”Cities84:56–65.
63.
YenB. T.MulleyC.ShearerH.2019. “Different Stories from Different Approaches in Evaluating Property Value Uplift: Evidence from the Gold Coast Light Rail System in Australia.” Transportation Research Record2673 (3): 11–23.
64.
YenB. T.MulleyC.TsengW-C.2018. “Inter-Modal Competition in an Urbanised Area: Heavy Rail and Busways.” Research in Transportation Economics69:77–85.
65.
ZhangM.2023. “Value Uplift from Transit Investment-Property Value or Land Value? A Case Study of the Gold Coast light Rail System in Australia.” Transport Policy132:88–98.
66.
ZhangM.YenB. T.2020. “The Impact of Bus Rapid Transit (BRT) on Land and Property Values: A Meta-Analysis.” Land Use Policy96:104684.
67.
ZhongH.LiW.2016. “Rail Transit Investment and Property Values: An Old Tale Retold.” Transport Policy51:33–48.
68.
ZhouJ.YangL.LiL.2018. “The Implications of High-Speed Rail for Chinese Cities: Connectivity and Accessibility.” Transportation Research Part A: Policy and Practice116:308–26.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
