THE EFFECT OF ANTICIPATED TRANSPORTATION IMPROVEMENT ON RESIDENTIAL LAND VALUES

This paper is an empirical study of residential land values in the vicinity of the new elevated transit link that runs the 11 miles from downtown Chicago to Midway Airport. The results show that in 1990 an increase of 17% in residential land values within one-half mile of the station sites can be attributed to improved access provided by the transit line. Alternatively, the increase was 1.9% (or $126.75 per lot) per mile of distance to downtown Chicago for those sites within one-half mile of the stations. The line opened on 31 October 1993, so the land market had begun to adjust well before the transit facilities were available for use.