The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, China
Most previous studies have focused on the impact of subways on housing prices instead of rents, while the latter could better measure residential values. Based on a dataset collected from a real estate agency in Beijing, which contains more than 900,000 housing rental transaction records from 2011 t...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
World Scientific Publishing Co. Pte Ltd.
2021-12-01
|
| Series: | Chinese Journal of Urban and Environmental Studies |
| Subjects: | |
| Online Access: | https://www.worldscientific.com/doi/10.1142/S2345748121500251 |
| _version_ | 1797672184498356224 |
|---|---|
| author | Xin MA Tao HUANG |
| author_facet | Xin MA Tao HUANG |
| author_sort | Xin MA |
| collection | DOAJ |
| description | Most previous studies have focused on the impact of subways on housing prices instead of rents, while the latter could better measure residential values. Based on a dataset collected from a real estate agency in Beijing, which contains more than 900,000 housing rental transaction records from 2011 to 2020, this paper empirically evaluates the causal effect of subway network expansion on housing rents. It employs a series of progressive difference-in-difference (DID) approaches, to estimate the impact and determine the impact scope. The findings demonstrate that a reduction of the distance to subway stations by 1 km increases the rents by 2.32%; the impact scope is about 1.5 km and the average rent appreciation within the range is 5%. The addition of a line for non-transfer stations raises the rents by 10% for houses 1.5–2 km away from the stations, extending the impact scope. Houses with large areas in upscale and old neighborhoods near the city center are affected less by subways. It also confirms the siphon effect in the rental market, i.e.: rents of houses far away from the new stations fall after the opening of the stations. |
| first_indexed | 2024-03-11T21:26:21Z |
| format | Article |
| id | doaj.art-e1c136ba2963474da1f4c4f2650e2c3f |
| institution | Directory Open Access Journal |
| issn | 2345-7481 2345-752X |
| language | English |
| last_indexed | 2024-03-11T21:26:21Z |
| publishDate | 2021-12-01 |
| publisher | World Scientific Publishing Co. Pte Ltd. |
| record_format | Article |
| series | Chinese Journal of Urban and Environmental Studies |
| spelling | doaj.art-e1c136ba2963474da1f4c4f2650e2c3f2023-09-28T03:55:35ZengWorld Scientific Publishing Co. Pte Ltd.Chinese Journal of Urban and Environmental Studies2345-74812345-752X2021-12-01090410.1142/S2345748121500251The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, ChinaXin MA0Tao HUANG1Guanghua School of Management, Peking University, Beijing 100871, ChinaGuanghua School of Management, Peking University, Beijing 100871, ChinaMost previous studies have focused on the impact of subways on housing prices instead of rents, while the latter could better measure residential values. Based on a dataset collected from a real estate agency in Beijing, which contains more than 900,000 housing rental transaction records from 2011 to 2020, this paper empirically evaluates the causal effect of subway network expansion on housing rents. It employs a series of progressive difference-in-difference (DID) approaches, to estimate the impact and determine the impact scope. The findings demonstrate that a reduction of the distance to subway stations by 1 km increases the rents by 2.32%; the impact scope is about 1.5 km and the average rent appreciation within the range is 5%. The addition of a line for non-transfer stations raises the rents by 10% for houses 1.5–2 km away from the stations, extending the impact scope. Houses with large areas in upscale and old neighborhoods near the city center are affected less by subways. It also confirms the siphon effect in the rental market, i.e.: rents of houses far away from the new stations fall after the opening of the stations.https://www.worldscientific.com/doi/10.1142/S2345748121500251Subwayhousing rentsdifference-in-differenceinfluence rangesiphon effect |
| spellingShingle | Xin MA Tao HUANG The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, China Chinese Journal of Urban and Environmental Studies Subway housing rents difference-in-difference influence range siphon effect |
| title | The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, China |
| title_full | The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, China |
| title_fullStr | The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, China |
| title_full_unstemmed | The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, China |
| title_short | The Impact of Subway Network Expansion on Housing Rents: An Empirical Study in Beijing, China |
| title_sort | impact of subway network expansion on housing rents an empirical study in beijing china |
| topic | Subway housing rents difference-in-difference influence range siphon effect |
| url | https://www.worldscientific.com/doi/10.1142/S2345748121500251 |
| work_keys_str_mv | AT xinma theimpactofsubwaynetworkexpansiononhousingrentsanempiricalstudyinbeijingchina AT taohuang theimpactofsubwaynetworkexpansiononhousingrentsanempiricalstudyinbeijingchina AT xinma impactofsubwaynetworkexpansiononhousingrentsanempiricalstudyinbeijingchina AT taohuang impactofsubwaynetworkexpansiononhousingrentsanempiricalstudyinbeijingchina |