Exploring the Impacts of Transit-Oriented Development Housing Stock and Built Environments on Housing Costs in Twenty-Six U.S. Metropolitan Areas

Abstract

There is general agreement that high housing costs in transit-oriented developments (TODs) largely stem from housing supply shortages. However, the debate persists on whether supply-side efforts could reduce housing costs in TODs. This paper contributes to this debate by examining the impacts of TOD housing stock and built environments on housing costs. The block groups of twenty-six U.S. metropolitan areas were classified into six categories based on proximity to rail, housing density, and walkability. The studied metropolitan areas were grouped into three clusters based on housing and transit characteristics. Results from multilevel regressions partly support supply-side efforts, including “missing-middle” housing, showing that in two of the clusters, a larger share of metropolitan TOD housing units is associated with lower TOD rents. However, the results also show the limits of supply-side efforts to lower costs in metropolitan areas where housing in TODs is more expensive than the metropolitan average.