The impact of light rail transit station area development on residential property values in Calgary, Canada: Focus on land use diversity and activity opportunities

Abstract

Although many studies have examined the effects of transit accessibility on housing prices, fewer studies have looked more closely at the implications of transit station area development on the urban housing market. Employing a multi-level hedonic price model, we examined the effect of light rail transit (LRT) station area development on residential property values in Calgary, Canada. Station area development is measured by 1) land use diversity index, also known as land use entropy, and 2) activity opportunity count (i.e., the number of selected business licenses) within the 400m-buffers of station. In the case of Calgary, land use diversity is not associated with property values, which is counter to the existing knowledge. However, our findings suggest that activity opportunities around stations are positively related, particularly to the value of apartment properties. We also observed that a lack of activity opportunities for pedestrians and transit users and a poorly designed station area can partially explain the unexpected outcomes.