Expected transport accessibility improvement and house prices: Evidence from the construction of an undersea road tunnel system
| Authors | |
|---|---|
| Year of publication | 2023 |
| Type | Article in Periodical |
| Magazine / Source | JOURNAL OF TRANSPORT GEOGRAPHY |
| MU Faculty or unit | |
| Citation | |
| Web | Paper |
| Doi | http://dx.doi.org/10.1016/j.jtrangeo.2023.103649 |
| Keywords | Transport accessibility;Expectations;House prices;Ryfast tunnel system construction;Norway |
| Attached files | |
| Description | This paper studies the impact of expected transport accessibility improvement on house prices. We identify the effect exploiting a quasi-natural experiment created by the approval and construction of the Ryfast tunnel system in Rogaland, Norway, which shortened the traveling time to the affected municipality from 62 to 24 min. Estimates of a repeated sales model in a difference-in-differences framework show that the expectation of improvement in transport accessibility connected with the construction of the tunnel system led to an increase in house prices by 12.8% on average. That effect grew as the opening of the tunnel drew closer and was driven by less valuable houses. |
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