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Urban Studies, Vol. 20, No. 2, 147-158 (1983)
DOI: 10.1080/00420988320080291
© 1983 Urban Studies Journal Limited

The Effects of a New Subway Line on Housing Prices in Metropolitan Toronto

Vladimir Bajic

Saint Mary's University, Halifax, Nova Scotia, Canada

An analysis by means of using the estimation results of a modal choice model and the hedonic price regressions model is conducted in order to identify the effects of a subway line in Toronto on the values of housing units. The modal choice model is used for the estimation of the direct benefits from the improvement in transportation, and the hedonic price equations for the identification of subway effects on housing prices. Empirical results indicate that the direct savings in commuting costs have been capitalized into housing values.


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