Abstract

Previous research has shown that proximity to transit stations correlates positively with housing values. However, it is also possible that negative impacts on housing prices could result from negative externalities associated with stations and their surrounding tracks. The overall goal of this study is to distinguish effects of urban rail rapid transit which raise housing prices from those which lower housing prices while isolating the impact of station type.
This thesis examines the impact of urban rail rapid transit station types (underground, ground-level, or elevated), on values of adjacent residential properties in Toronto and Vancouver Metropolitan Areas. This is done through applying a hedonic price modelling methodology to analyze housing values in those two cities. Results indicated that on average, proximity to urban rail rapid transit stations led to higher residential property values and that the type of the closest urban rail rapid station was among the factors determining the amount of this capitalization. This relationship varied based on the city, characteristic of the neighbourhood, those of the transit infrastructure and the property itself.