Impact of Rapid Transit on Property Value in Chicago: A GIS Analysis

1
Impact of Rapid Transit on Property Value in
Chicago A GIS Analysis

http//faculty.roosevelt.edu/achet/GIS_OCT_AUT.doc
2
Objectives

• To outline a method of accessing the impact of
  rapid transit on property value particularly to
  conceptualize how GIS can be used as an
  integrative tool in order to gain insights to
  improve communication as well as enhance the
  credibility of the impact valuation process.

3
Presentation I Outline
I. Background and Context II. Review of Past
studies III. Methodology IV. Analysis, results
and discussion V. Conclusions
4
I Background and Context

• 1. Introduction
• 2. Approaches to property valuation
• 3. GIS as an analytical tool

5
1. Introduction

• Rapid transit benefits are
• Improved accessibility,
• lessening congestion
• reducing transportation costs
• Commercial and residential locations with and
  without transit have value difference
• Other important factors are population, income
  level, proximity and environmental factors.

6
2. Approaches to property valuation

• Traditional Property valuation techniques are
• Comparable sales,
• Income base,
• Replacement cost and
• Statistical extrapolation.

7
3. GIS as an analytical tool

• GIS application Context
• GIS used as a tool in impact assessment of
  complex environmental impact assessment
• Geographic Information Systems (GIS) can be used
  to efficiently organize and analyze market data
  for inclusion in standard valuation models
• GIS help building on existing knowledge and
  databases over a period of time.
• We can link spatial and non-spatial information
  together. Can be a platform for better
  connectivity and ownership among stakeholders and
  a group planning also.
• We can bring several perspectives together. Thus,
  we can Initiate long-term perspective on managing
  environmental change or with a new project.

8
II. Review of Past studies

• 4. Prior to 1933 in Chicago
• 5. Recent studies in other Metropolitan areas

9
4. Prior to 1933

• 100 Years of analysis showed that there is a
  cyclic process
• A land boom of the rail road era (1843-1862). The
  land boom followed a great panic, civil war and a
  great fire(1863-1877)
• The land boom of skycrapers and the first worlds
  fair (1978-1898)
• Land boom after world war 1898-1933

10
5. Recent studies

• In Washington DC (Larmen et al, 1977).
• the changes in real estate values may occur both
  prior to and after a transit systems
  construction Also, access to the transit system
  and the implementation schedule of Metra were
  both found to be significant determinants of
  parcel transaction prices
• Study of the expressway impacts in Chicago,
  Golden (1968) found significant impact except for
  Stevenson Expressway. A recent study by Chicago
  Transit Authority (CTA, 1997) concluded Metra
  stations positively effects the property value.

11
5. Recent studies (contd)

• Elsewhere, previous studies in Boston by
  (Amstrong (1994), in Washington DC and Atlanta by
  Cervero (1994), in San Francisco by Diaz (1999),
  in California by Cervero and Duncan (2000 2001),
  in Dallas by Weinstein and Clower (2002), in San
  Diego by Cervero and Duncan (2002) concluded that
  urban infrastructure and public mass
  transportation systems can alter the spatial
  distribution of urban property values. Some of
  these studies reported increases up to 32.1
  (Weinstein and Clower, 2002).

12
III Methodology

• 1. Principles
• 2. Available Methods
• 3. Study Area
• 4. Methods Used

13
6. Principles

• 1. Readily available data
• 2. Interactive to suit the context and
  credibility
• 3. Spatial insights for communication

14
7. Available Methods

• Two methods are widely used
• Hedonic model
• Apportioning of factors that influence
  property value transportation infrastructure,
  structure, size, and age, land use and socio
  demographics
• 2.Multiple regression model
• based on proximity, income level, environmental
  conditions, land use (residential or commercial),
  population density.

15
7. Study Site

• Northwest-O'Hare to Schaumburg
• Length 9.5 mile (15 KM), connecting Schaumburg
  and Woodfield with O'Hare and existing "L"TM
  service.
• River Road station
• A moderate level of service for work travel

16
Assessing Impact of Rapid Transit System on
Property Value A GIS Analysis
Metra Map
Buffers
Proximity map
Proximity Scenario
Geo-coding
RR Stations
Union
Proximity/ Population Scenario
Population Class
Census 2000
Union
Income Class
Proximity Population Income Scenario
Proxy Indicator-based Hypothesis testing
Initial Inferences w/wo
Land Value Blue Book-based Inferences
Multi-parameter Model Testing
Interactive Impact Scenarios
17
Analysis, Results and Discussion

• Background

18
Map of Subway Proposed System 1943
19
Map of Subway Proposed System 2000
20
Analysis, Results and Discussion

• Population and Income level 2000

21
Schaumburg
O'Hare
22
(No Transcript)
23
Analysis, Results and Discussion

• Analysis

24

• Three Alternative Became
• Evident
• OHare Schaumburg
• OHare-Enesco Plaza Schaumburg
• Link to Existing link

25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
(No Transcript)
29
(No Transcript)
30
(No Transcript)
31
Analysis, Results and Discussion
The Northwest-O'Hare to Schaumburg project never
picked up a great momentum after it was
proposed. It is included in Destination 2020, It
has political support of the northwest suburban
mayors and senators With proposed O'Hare Airport
expansion plan it is One of the CTA's favored
extension projects.
32
Initial Inferences

• Initial Inferences

33
What percentage of increase in income level after
the transit system development is needed in order
to make it significantly different from the
increase in property value or income before the
transit system development.
34
n41
Preliminary resultsIn order to conclude that the
impact of transit system is significantly
different, there must be a 20 to 25 increase in
income
35
Future Directions
Land Value Blue Book-based Model Calibration and
Validation Multi-parameter Model
Development Interactive Integrated Scenarios
Generation Property values with and without
greenways
36
Open for Comments, Suggestions, clarifications