Residential property valuations near transit stations with transit-oriented development

• A spatial hedonic model is used to analyze estimates of residential housing prices.
• Estimated median block group level price data from Zillow are used.
• Results show that accessibility to New York City is valued.
• Areas with transit-oriented development are also valued but less than accessibility.

Access to train stations is highly valued and this is reflected in the premium price of residential property near train stations. Transit-oriented development (TOD) and the amenities provided by mixed-use development may also provide value to consumers. The analysis presented here evaluates the median property valuations surrounding eight transit stations with TOD using residential property valuation data provided by Zillow™, an on-line real estate listing firm. A hedonic regression analysis was used to evaluate the association between median block-group-level residential property valuations and the distance to the station with TOD and other stations with direct, non-stop access to New York City, while controlling for demographic and housing variables. Spatial econometric software and techniques are used to control for spatial autocorrelation. Results suggest that while the mixed-use development typically found with TOD is likely valued, proximity to stations with direct access to New York City leads to higher relative property valuations.