Rail location neighbourhoods: proximity premiums and residential sorting
The objective of this study is to determine if property premiums and other rail induced consequences influence demographic characteristics within approximately two kilometres radius of a rail station. The analysis uses two approaches to examine this relationship. First, the study identifies and examines the range of factors that influence the perceived value of rail transit nodes as reflected in nearby residential property values. Second, the study analyses the effect of rail accessibility on
... e pattern of household incomes and other demographic characteristics nearby rail stations. The analytical methods involve property valuation and assessment of spatial effects on demographic composition. The former employs both global (Hedonic Price Model) and local analysis (Geographically Weighted Regression) to explore the relationships within the multivariate data set. The latter involves ordinary least squares (OLS) regression techniques to estimate the equations. This dissertation is significant as it is the first attempt to analyse all key demographic variables in a comprehensive exploration of Rail Transit Served Communities (RTSCs). Previous studies in this area have provided only limited explanations of residential sorting, focusing predominately on gentrification in response to recent public rail infrastructure investment. Moreover, this study advances location choice modelling by introducing new rigour and innovation to the analytical process. The empirical results will provide useful and practical quantitative information for policymakers, urban planners, equity advocates and businesses that rely on an understanding of rail induced proximity premiums and residential sorting.