Hedonic Price Effects of Pedestrian- and Transit-Oriented Development

Recent consumer surveys and demographic analyses have indicated a growing market for pedestrian- and transit-designed development. Theoretically, this market shift should be reflected in the price people are willing to pay for those styles of development. This article traces the literature that uses hedonic price methods for testing this hypothesis, either by assessing pedestrian/transit-design development holistically or by evaluating its component parts. The literature confirms that the market shift is, indeed, being capitalized into real estate prices and demonstrates that the amenity-based elements of transit-designed development play an important positive role in urban land markets, independent of the accessibility benefits provided by transit.