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The effect of the Vancouver Advanced Light Rapid Transit System on single family property values

University of British Columbia

This thesis examines the relationship between transportation improvements and single family housing values. While the relationship between access and housing values has been recognized for many years, its relevance has increased in recent years with the use of transportation policies as an active planning tool. Identifying the effect this will have on existing houses is important to decision makers, government bodies, the real estate industry, and current homeowners. In this study an empirical analysis is performed on a neighbourhood along the route of the Advanced Light Rapid Transit (ALRT) System currently under construction in Vancouver, British Columbia. Since the system will not be operational until 1986, it is the pre-service price impacts that are examined. More specifically, the effect of the station locations and the alignment on housing prices is examined using multiple regression analysis. This analysis also examines the timing of these impacts. A comparison of sales activity around the ALRT corridor with an adjacent control area is included to search' for ALRT effects or extra volatility in the market that may not be reflected in the price movements. The results indicate that the ALRT station locations are affecting housing prices in 1983 with the market paying higher prices for locations nearer to future stations. This result was not evident prior to 1983 (data was included back to 1971). No negative externalities were identified from the presence of the line itself and no extra sales activity or volatility was found in the ALRT area. Overall the research has shown that the market in Vancouver is reacting to the ALRT system about two and a half years prior to operation. This reaction is most likely a combination of the capitalization of the expected future travel savings and a speculative element that may be operating in the market now with the expectation of gains in the future when the system becomes operational.

Text

2010-05-08

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http://hdl.handle.net/2429/24497

Business Administration

University of British Columbia

Graduate