Transit development shaping urbanization: Evidence from the housing market in Beijing

• Transit impacts extend to 1-mile from stations for metro but to 1/2-mile for light rail and is discernable for BRT.
• Homes near metro enjoy an average proximity premium (US$39.41) larger than light rail (US$17.57).
• Development context is critical to the capitalization of transit access regardless it is rail or bus.
• Technologies matter. BRT seems to be more context dependent, whereas rail tends to have a stronger independent driving force.

Transportation plays a critical role in shaping urbanization paths and outcomes. This study investigates the interplay between transit and urban spatial development by looking at housing market performance related to different transit technologies. The study examines the capitalization of transit access in property values and compares variations in transit access premiums among bus rapid transit (BRT), light rail transit (LRT) and metro rail transit (MRT). A sample of 8601 housing sales in Beijing was used to estimate hedonic price models for the region and for market segments along 11 transit lines. Results show that the impact zone extends to one mile from stations for MRT but only to half a mile for LRT. For BRT, the impact zone is indiscernible. On average, homes near MRT enjoy a proximity premium of 248.31 yuan (or US$39.41)/m2 for every 100 m closer to the station. For LRT, the premium is 110.71 yuan (or US$17.57). The study concludes that technologies play a role. Technological features of transit should be taken into consideration when delineating transit districts. The potential for future development or redevelopment in addition to capital costs should be considered when choosing transit technologies, especially when cities or regions are in the mid-process of urbanization and spatial growth. Nevertheless, development context is still critical for realizing and maximizing access benefits regardless of rail or bus.