For Portland Streetcar, ECONorthwest measured the price effects of the streetcar corridor in the stimulation of real estate development, applying a hedonic price model to a historical dataset of real estate transactions in the streetcar corridors. Through the use of regional time series real estate datasets, in concert with data relating to development policies, permits, and other information from public agencies, ECONorthwest isolated the contribution of the streetcar corridor from other factors influencing real estate prices.
The analysis resulted in estimates of the proximity to the streetcar corridor’s contribution to land values and the extent of their geographic reach (spatial impact). The model estimates were employed in a spatially-detailed model of the development process to construct a counterfactual scenario (without the streetcar) in order to estimate the impacts on the built environment.
