The effect of a subway on residential property values in Toronto

Abstract

This study examines the sale prices of residential properties and a description of their characteristics to isolate the relationship between land values and transportation facilities in Toronto. Detailed simulations of door-to-door access costs in the vicinity of a major street are examined before and after construction of a subway. The change in relative values parallel to the transport facility and perpendicular to it are examined. The major impact appears to be an increase in slope of the rent surface with distance from the subway stations, rather than changes in the slope along the subway line.