JSR

This study explores the temporal impact of Light Rail Transit (LRT) expansion on property value premiums. Using two MAX alignments in Portland, Oregon, a spatial lag model and propensity score matching were employed to analyze the medium and long-term effects. Key findings show that the introduction of the first LRT line increased property values near LRT stations. However, unlike prior studies, additional LRT lines generally did not add premiums, except in the east-side case with a 15-year gap between the first and second lines. That is, improved transit accessibility from additional LRT lines did not consistently translate into property value increases unless there was a significant time gap between their operations. Implications for urban planning include confirming the bid rent theory, recognizing the nuanced impact of additional LRT lines, and emphasizing the need for ongoing monitoring and adaptation of policies to ensure enduring benefits for communities. This study contributes to enhancing the understanding of the market response to the introduction of the LRT infrastructure and the expansion of existing lines, and offering pertinent planning policies.

transit accessibility; real estate market; property value premium; propensity score matching; spatial econometrics