Expected transport accessibility improvement and house prices: Evidence from the construction of an undersea road tunnel system

Authors

MIKULA Štěpán MOLNÁR Peter

Year of publication 2023
Type Article in Periodical
Magazine / Source JOURNAL OF TRANSPORT GEOGRAPHY
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web Paper
Doi http://dx.doi.org/10.1016/j.jtrangeo.2023.103649
Keywords Transport accessibility;Expectations;House prices;Ryfast tunnel system construction;Norway
Attached files
Description This paper studies the impact of expected transport accessibility improvement on house prices. We identify the effect exploiting a quasi-natural experiment created by the approval and construction of the Ryfast tunnel system in Rogaland, Norway, which shortened the traveling time to the affected municipality from 62 to 24 min. Estimates of a repeated sales model in a difference-in-differences framework show that the expectation of improvement in transport accessibility connected with the construction of the tunnel system led to an increase in house prices by 12.8% on average. That effect grew as the opening of the tunnel drew closer and was driven by less valuable houses.
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