Work

Do New Light Rail Stations Enhance Property Values in Mature Cities? Evidence from UK Cities

Year: 2025

Type: article

Abstract: With the growing focus on sustainable development, light rail transit (LRT) systems are increasingly viewed as key drivers of low-carbon mobility and spatial equity. However, as urban spatial structures become more stable, it remains unclear whether LRT systems can still enhance quality of life, property values and contribute to inclusive urban regeneration. This study explores Manchester, Sheffield, and Nottingham, three UK cities with recent LRT development experience, as case studies. Using LRT constructed or expanded between 1995 and 2019 as a quasi-natural experiment, a difference-in-differences (DID) model is applied to estimate the causal impact of LRT expansion on property prices. The results indicate that LRT construction can lead to a 4.44% to 8.29% increase in nearby property values, with a lagged effect observed after implementation. The impact is more pronounced in areas with well-developed bus networks and in lower-income areas. Further mechanism analysis suggests that the effect is indirectly driven by improved accessibility and enhanced convenience of access to local amenities.

Source: Sustainability

DOI: 10.3390/su172310505

Authors: Ziye Lan, Alistair Ford, Roberto Palacin

Institution: Newcastle University

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Sustainable cities and communities, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,896