Case Study of Property Value Transfer Attributed to Transit: Spatial and Temporal Hedonic Price Impact of Light Rail in Minnesota’s Twin Cities

Abstract

Does the proximity of transit increase property values, and can one example apply to another? Using a spatial and temporal hedonic price framework, this study of light rail transit’s impact on residential property values compares the station area property impacts of the Green and Blue Lines in Saint Paul and Minneapolis, Minnesota. The study also points to when “value transfer” (used here to describe the comparison and application of property value impacts near transit) is appropriate, and what practitioners should keep in mind to maximize the effectiveness of the exercise. In the case of value transfer for transit, the study finds that intimate local knowledge matters more than special modeling specifications to appropriately capture the impacted properties and transfer the return of investment.