Do people value bicycle sharing? A multilevel longitudinal analysis capturing the impact of bicycle sharing on residential sales in Montreal, Canada

Many studies have aimed to assess the impacts of major transportation investments, such as freeways expansions and light rail presence on property value. Yet, few studies have attempted to understand the impact of active transportation investments on housing prices. This study attempts to understand the relationship between a new bicycle sharing system and home sale prices in Montreal, Canada. Using multiple sales for units in multifamily housing that are reported in the Multiple Listings Service (MLS) of Montreal between 1996 and 2012 we develop step wise multilevel longitudinal hedonic regression models analyzing this relationship while controlling for various spatial and temporal factors that are known to impact home sales. Our results show that the presence of a bicycle sharing system in a neighborhood with 12 stations serving an 800-meter buffer is expected to increase the property value for units in multifamily housing by approximately 2.7 percent. Policy makers wishing to improve the local urban environment while benefiting from economic gains can work on increasing the availability of bicycle sharing systems as this will likely result in increasing property values, improved neighborhood health, and a more vibrant urban environment.