Impacts of transportation infrastructure proximity and accessibility on real property values
Investments in public infrastructure such as highways, airports, mass transit, and stadiums can increase adjacent property values, generating a value premium for private developers and adjacent property owners. A portion of this value can be "captured" as public revenue via property taxes to assist financing such improvements. States and local governments aim to anticipate and capture the economic value created by transportation accessibility. While value capture (VC) represents an opportunity for regional agencies to recapture some transportation infrastructure costs, it is not clear how much value is added by the infrastructure in a particular region. This research applies geographic weighted regression (GWR) to quantify the impacts of transportation infrastructure accessibility on real property values in El Paso, Texas. The presence of spatial nonstationarity and heterogeneity confirms that transportation infrastructure proximity and accessibility might generate a premium on real property values, but that such premium is not always positive, and is even negative in some areas. GWR shows that benefits from a transportation facility can be capitalized by parcels even if they are located away from the facility. Finally, GWR maps can assist to better VC policy development by estimating how much value is added by infrastructure projects throughout particular locations. ^
Economics, General|Transportation|Urban and Regional Planning
Bujanda, Arturo, "Impacts of transportation infrastructure proximity and accessibility on real property values" (2014). ETD Collection for University of Texas, El Paso. AAI1583899.