Prior studies have expressed the value of location in real estate, but more recent studies have explored the influence that public transportation has had on housing prices. Access to public transportation is understood to increase the value of homes. Easier access to public transportation allows for shorter and more convenient commutes into or within cities. However, other studies have found that proximity to public transportation can also have adverse effects on property values. This paper investigates whether the implementation of the Greenbush Commuter line in Massachusetts in October 2007 increased the housing prices in Scituate, Ma--the furthest town from the city of Boston and the last stop on the Greenbush Line. Using a difference-in-difference model, we examine housing prices in Scituate, MA before 2007 and after 2007 and compare these changes to housing prices in two similar towns in Massachusetts that did not implement a commuter line. Our results indicate that the implementation of the Greenbush Commuter line in 2007 did not have a statistical difference between the housing prices in Scituate, Ma before 2007 and housing prices in Scituate, MA after 2007. These results are not consistent with our hypothesis that housing prices in a town that implemented public transportation would increase. This inconsistency may be due to the fact that proximity to public transportation can have negative externalities that lead to adverse effects on housing prices and lessen the positive effects from public transportation.
Perticone, Alexandra Taylor and Coveney, Christine S.
"The Effects from Public Transportation on Property Values: A Closer look at Scituate, Hanover, and Norwell, Massachusetts,"
Journal of Environmental and Resource Economics at Colby: Vol. 4
, Article 4.
Available at: http://digitalcommons.colby.edu/jerec/vol4/iss1/4
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