Estimating household demand for transit-oriented development: A two-stage hedonic analysis in Kitchener-Waterloo, Canada

Abstract

Interest in mass transit investment and transit-oriented development (TOD) is growing as a way to promote smart growth. These investments and policy changes may imply new housing demands, which are not well understood. Using Kitchener-Waterloo, Canada, as a case study, we address the following questions: (1) Do households in this mid-sized region show preferences for TOD neighborhoods? How do preferences for transit accessibility vary across space? (2) What household characteristics are associated with the demand for housing and neighborhood characteristics? With a combined dataset of household survey and housing transactions, we present a novel application of the two-stage hedonic model to understand the housing demand structure impacted by transit policies. This study provides evidence of demand for TOD and LRT accessibility by households with a range of socio-demographics. We thus recommend the region build complete TODs to satisfy a variety of housing needs.

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