The residential property value premium of the proximity to carsharing and bikesharing services: Evidence from New York City

Abstract

While significant existing scholarship has confirmed that accessibility to “macro” transportation systems, such as transit, creates some value for real estate, few studies have examined the capitalized effect of “micro” transportation modes on property values. Even, despite the increased ridership and market shares of carsharing and bikesharing services, empirical evidence on its property value capitalization effects of the emerging transportation services remains far less limited. In this context, this research examines the residential value uplift induced from the proximity to carsharing (Zipcar) and bikesharing (CitiBike) services in New York City by employing Spatial Durbin Models with sales transaction data that are reported in the New York City Department of Finance in 2018. The results indicate that all else equal, single-family housing near CitiBike station sold at higher prices; a 10 percent decrease in distance was associated with a 4.1 percent increase in its value. The proximity to Zipcar and CitiBike services were positively valued in the multi-family housing market. Specifically, a 10 percent decrease in distance was associated with a 1.1 and 3.5 percent increase in the value of the housing, respectively.