Identifying house price effects of changes in urban street configuration: An empirical study in Nanjing, China

We explore the proposition that the fast continuous changes in urban street network associated with urban growth and the attendant changes in accessibility are partial determinants of micro-level house price movement. To test this hypothesis we examine the dynamic relationship between urban configuration and house price in the short-run from 2005 to 2010, taking the case of the city of Nanjing, China. A spatial-network analysis method is employed to track changes in accessibility within the urban street layout over time. The results provide evidence that changes in urban configuration are statistically associated with housing market changes. As the city's road grid changes through suburban expansion, new highways and internal adaptation, changes in relative accessibility follow, both locally and throughout the whole city. Generally, improved accessibility leads to higher property prices as expected. But we also find a negative relationship where new congestion hot spots are created and we identify several types of systemic spill-over effects.