The research paper examines the impact of Bus Rapid Transit (BRT) systems on the value of residential properties in Vancouver, Washington. The study focuses on the effect of BRT stations on home prices and analyzes this impact using both the hedonic and repeat sales methods. The authors also consider the heterogeneity of effects based on the racial composition of neighborhoods.

The study finds significant positive effects of BRT stations on home prices. Using the hedonic method, which estimates the value of specific characteristics of a property, the authors find that homes located near BRT stations experienced a large increase in value. This effect is consistent across different walking distances used to define the treatment area around the stations.

The authors also examine the heterogeneity of effects based on the racial composition of neighborhoods. They find that the impact of a BRT station on home prices varies depending on the percentage of white population in the neighborhood. In neighborhoods with a higher percentage of white population, the effect of a BRT station on home prices is smaller or even negative, while in neighborhoods with a lower percentage of white population, the effect is larger and positive.

The authors suggest that this heterogeneity in effects may be due to factors such as transit use patterns, demand for non-commuting trips, concerns about street parking displacement, and different assumptions about the connection between transit and crime. They note that transit use is correlated with race, with white residents being less likely to use transit for commuting compared to Black and Hispanic residents.

The study also calculates the total value of residential real estate created by the BRT system within a 30-minute walk of a station platform. The authors estimate that the BRT system generated $333 million in new real estate value, which is more than six times the construction cost of the project. They propose the use of Land Value Capture (LVC) policies, such as property tax levies on properties within the vicinity of BRT stations, as a financing mechanism for future BRT systems.

Overall, the study provides empirical evidence of the positive impact of BRT systems on residential property values. It highlights the importance of considering the heterogeneity of effects based on neighborhood characteristics and suggests the potential use of LVC policies to fund BRT projects.

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