Value Capture to Fund Public Transportation: The Impact of Warm Springs BART Station on the Value of Neighboring Residential Properties in Fremont, CA

Value Capture to Fund Public Transportation: The Impact of Warm Springs BART Station on the Value of Neighboring Residential Properties in Fremont, CA

Abstract: 

This study estimates households’ willingness to pay for single-family houses and condominiums/townhouses located within 2 miles of Warm Springs (WS) BART Station in Fremont, CA. The study finds that, compared to the houses sold in the referent category (2 to 5 miles away and sold during the pre-project-announcement period of 2000-2001), an average-priced single-family house within two miles of the WS BART Station was higher in price by 9% to 15%. The total property value increment for the single-family houses is large enough to fund the $802 million Warm Springs BART Extension Project cost five times over.

Additional Resources: 

Authors: 

SHISHIR MATHUR, PH.D.

Dr. Shishir Mathur is Associate Dean of Research in the College of Social Sciences and a Professor of Urban and Regional Planning at San Jose State University. His research interests include transportation finance, urban and real estate economics, affordable housing policy, international development, infrastructure and development finance, and growth management. His research has been published in top-tier journals such as Transportation Research Part A, Transport Policy, Journal of Planning Education and Research, Urban Studies, Land Use Policy, Cities, and Habitat International. He is the author of two books: Understanding India’s New Approach to Spatial Planning and Development: A Salient Shift? (Oxford University Press) and Innovation in Public Transport Finance: Property Value Capture (Routledge). Dr. Mathur has advised several international and national organizations. United Nations Human Settlements Programme, UN-HABITAT, sought his input on ways to encourage land based financing in Africa, Asia, and South America. He advised Federal Transit Administration on ways to encourage use of land value capture to fund transit-oriented developments and transit infrastructure.

Published: 

May 2019

Keywords: 

Value capture
Transportation economics
Finance
Public transit
Rapid transit