Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York City

Investment in public transportation such as a metro line extension is often capitalized partially into housing values due to the spatiotemporal effects. Using housing transaction data from 2014 to 2019, this paper studies the Second Avenue Subway or Q-line extension in New York’s City’s Manhattan bo...

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Main Authors: ChengHe Guan, Mark Junjie Tan, Richard Peiser
Format: Article
Language:English
Published: University of Minnesota Libraries Publishing 2021-12-01
Series:Journal of Transport and Land Use
Subjects:
Online Access:http://www.jtlu.org/index.php/jtlu/article/view/1915
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author ChengHe Guan
Mark Junjie Tan
Richard Peiser
author_facet ChengHe Guan
Mark Junjie Tan
Richard Peiser
author_sort ChengHe Guan
collection DOAJ
description Investment in public transportation such as a metro line extension is often capitalized partially into housing values due to the spatiotemporal effects. Using housing transaction data from 2014 to 2019, this paper studies the Second Avenue Subway or Q-line extension in New York’s City’s Manhattan borough. Multiple metro station catchment areas were investigated using spatial autocorrelation-corrected hedonic pricing models to capture the variation of housing price dynamics. The results indicate that properties in closer proximity to the Q-line extension received higher price discounts. The effect varied by occupancy type and building form: condominiums experienced the highest price discount, while walk-up and elevator co-ops experienced a price premium. After controlling for location variations, we observed price discounts on the westside and price premiums on the eastside of the Q-line. Residential properties within 150 m west to the Q-line extension received the highest price discount post operation, while on the eastside, properties in the same proximity received the highest price premium. The anticipation effect varies by distance to metro extension stations, both before and after the operation of metro line extension. We discuss the disruption of metro construction on the housing market depending on housing type, location variation, and changes over time.
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spelling doaj-art-3726730f8b7948228a74f65b63cab5a32025-08-20T01:51:04ZengUniversity of Minnesota Libraries PublishingJournal of Transport and Land Use1938-78492021-12-0114110.5198/jtlu.2021.1915Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York CityChengHe Guan0Mark Junjie Tan1Richard Peiser2Harvard UniversityUniversity of OxfordHarvard UniversityInvestment in public transportation such as a metro line extension is often capitalized partially into housing values due to the spatiotemporal effects. Using housing transaction data from 2014 to 2019, this paper studies the Second Avenue Subway or Q-line extension in New York’s City’s Manhattan borough. Multiple metro station catchment areas were investigated using spatial autocorrelation-corrected hedonic pricing models to capture the variation of housing price dynamics. The results indicate that properties in closer proximity to the Q-line extension received higher price discounts. The effect varied by occupancy type and building form: condominiums experienced the highest price discount, while walk-up and elevator co-ops experienced a price premium. After controlling for location variations, we observed price discounts on the westside and price premiums on the eastside of the Q-line. Residential properties within 150 m west to the Q-line extension received the highest price discount post operation, while on the eastside, properties in the same proximity received the highest price premium. The anticipation effect varies by distance to metro extension stations, both before and after the operation of metro line extension. We discuss the disruption of metro construction on the housing market depending on housing type, location variation, and changes over time.http://www.jtlu.org/index.php/jtlu/article/view/1915New York CityTransitUrban transportationhousing pricesregional economic development patternEconomic Development
spellingShingle ChengHe Guan
Mark Junjie Tan
Richard Peiser
Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York City
Journal of Transport and Land Use
New York City
Transit
Urban transportation
housing prices
regional economic development pattern
Economic Development
title Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York City
title_full Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York City
title_fullStr Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York City
title_full_unstemmed Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York City
title_short Spatiotemporal effects of proximity to metro extension on housing price dynamics in Manhattan, New York City
title_sort spatiotemporal effects of proximity to metro extension on housing price dynamics in manhattan new york city
topic New York City
Transit
Urban transportation
housing prices
regional economic development pattern
Economic Development
url http://www.jtlu.org/index.php/jtlu/article/view/1915
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AT markjunjietan spatiotemporaleffectsofproximitytometroextensiononhousingpricedynamicsinmanhattannewyorkcity
AT richardpeiser spatiotemporaleffectsofproximitytometroextensiononhousingpricedynamicsinmanhattannewyorkcity