Impact of new rail transit stations on neighborhood destination choices and income segregation: Fid-Bau Portal

Impact of new rail transit stations on neighborhood destination choices and income segregation

Nilsson, Isabelle / Delmelle, Elizabeth C.

Abstract This article examines the neighborhood destination choices made by movers in neighborhoods affected by rail transit investments in the United States between 1970 and 2013 using data from the Panel Study of Income Dynamics. The results suggest that of those that move following the placement of a new rail transit station, low-income individuals are more likely to move to more disadvantaged neighborhoods following rail transit investments in their neighborhood when a small share of the neighborhood is covered by the station's service area. If the origin neighborhood is more accessible to the station however, lower-income residents are equally likely to move within the same neighborhood or to a neighborhood of similar socioeconomic status. Middle-to-high income individuals that relocated, particularly homeowners, are more likely to move to higher income neighborhoods, particularly within a few years before opening. These results contribute to the ongoing debate regarding transit-induced gentrification, affordable housing in transit-oriented developments, and public transit's role in shaping residential location choice and subsequent income segregation patterns.

Highlights • Weak evidence that lower-income movers move to more disadvantaged neighborhoods. • Higher income residents have a greater chance of neighborhood upgrading if moving. • Unequal impacts on sorting caused by new transit stations in certain neighborhoods.