Research on the influence of metro on housing price via difference-in-difference model

Abstract

In order to explore the impact of urban rail transit on the second-hand real estate market, based on the difference-in-difference model, this paper takes Wuhan Metro Line 7 as the research object, and makes an empirical analysis from two perspectives of different districts and different distance ranges. The results show that the operation of Wuhan Metro Line 7 has a statistical significance on the housing price in Jiangxia District, Hongshan District, Dongxihu District and Jiang’an District, and the impact coefficients are 1426.2, 786.7, 647.3 and 520.2, respectively. In terms of the different distances of Metro Line 7, the opening of the subway within 1200 meters has a significant positive influence on the second-hand housing prices along the periphery, and the degree of impact is 500m, 800m-1200m, and 500 m-800 m in descending order. Quantitative analysis of the impact of the subway on the surrounding housing prices can provide the government with a reasonable guide resident to purchase houses and provide relevant evidence for the scientific implementation of land acquisition and demolition.