Spatial and Temporal Capitalization Effects of Light Rail in Phoenix

Abstract

Studies have shown that proximity to light rail transit (LRT) stations positively affects property values and that these effects can appear before a system opens for operation. Here, we expand on these questions. We explore capitalization effects at several stages during the planning process for four real estate markets: single-family homes, homes in multifamily structures, commercial properties, and vacant land, using the case study of the LRT system in Phoenix, Arizona. We confirm earlier results concerning the value of proximity, and also find that markets exhibit value increases at different stages during the planning and construction process.