How do we densify and socially integrate our cities?: On the efficiency of urban property incentives in the vicinity of mass transit stations

Abstract

Stated choice methods was used to quantify the effects of different types of incentives (direct, indirect, changes in building regulations, etc.) in the willingness to increase density and reduce social segregation through residential projects in the vicinity of mass transit stations. A sample of 52 professionals from building companies and real-estate firms was asked to evaluate a series of urban scenarios under various incentive schemes and choose, in each case, when would they be prepared to start a conventional residential project (i.e. for buyers belonging to the same socio-economic group) or a socially integrated one (i.e. mixing buyers from different socio-economic groups). Results show that at an aggregate level, only 16% of developers would be interested in starting new residential projects at those locations. However, the availability of incentives could have a significant impact in the willingness to initiate increased density projects around the stations and also, but to a smaller degree, in the willingness to initiate mixed-housing projects.