From announcement to operation: The changing impact of light rail transit on housing prices across implementation phases
This study analyzed the impact of Montreal's Réseau express métropolitain (REM) light rail project on housing prices across four distinct phases: announcement, construction, testing, and initial operation. Using a difference-in-differences approach on panel data of 14,711 residential property transactions from 2013 to 2023, the researchers measured price changes within 800 meters of both operating and under-construction branches. The initial announcement premium persisted through construction, but testing and early operations offset these gains near the active branch, likely due to noise and vibration, while properties near unopened branches maintained their elevated values.
Why it matters — It demonstrates that transit-induced property value appreciation is not a simple upward trajectory, but a dynamic process where early speculative gains can be erased by the negative externalities of actual operations. This temporal variation suggests that land value capture policies must be carefully timed rather than assuming permanent post-construction price premiums.
Caveat: The findings are based on a single transit project in Montreal, which may limit generalizability to cities with different housing market dynamics or transit technologies.
Transportation Research Part A Policy and Practice · pdf · doi