Public transit and urban redevelopment: The effect of light rail transit on land use in Minneapolis, Minnesota

This study uses a unique data set derived from parcel data and aerial photographs to estimate the effect of the introduction of light rail transit (LRT) on land use in Minneapolis, Minnesota. We measure detailed changes in land use before and after construction of the METRO Blue Line and exploit heterogeneity in starting land use type and neighborhood characteristics to examine the differential effects of proximity to light rail across space. Results show that properties within ½ mile of operational LRT stations experience a small increase in the likelihood of land use change relative to when the LRT is under construction, but neither construction nor operation of the line appears to affect land use change relative to the time before construction. Within the corridor, proximity to LRT increases the likelihood of land use change on single-family and industrial properties, but appears to have no effect on vacant land, commercial properties, and multi-family properties.