Effect of Metrolink Light Rail Stations on Residential Property Values in St. Louis County, Missouri, USA

Abstract

This study investigated how light rail stations in St. Louis County impact the property values (especially single-family owner-occupied properties) for residences located nearby using publically accessible data. The preliminary finding indicated that a premium is present for properties located near transportation facilities; however, the effect is inconsistent for light rail in other cities. Assessment data was analyzed to determine if single-family properties located in the station area have higher property values compared to a control area. Station and control areas were designated at 365 meters (1,200 feet) and between 548 and 853 meters (1,800 and 2,800 feet), respectively. Regression modeling was used to measure differences in assessed values between the station and control areas while controlling for house size. Of the nine station areas with sufficient data, five showed positive effects from being located within 365 meters (1,200 feet) of a station. Premiums ranged from 4.1% to 7.1%. The remaining four station areas showed no effect. Additionally, analysis of sales values indicated that properties in the station areas are valued higher than is indicated by the assessed value.