The role of transit investments and initial neighborhood attributes on gentrification outcomes

Abstract

This research explores the disproportionate socioeconomic changes that neighborhoods undergo due to a new urban rail line and adjacent developments and whether these changes differ by neighborhood type. An index is developed to classify neighborhoods into three categories based on their socioeconomic characteristics prior to the line announcement. Average treatment effects are estimated by neighborhood category and over time through a quasi-experimental econometric framework. Econometric models are estimated for five dependent variables and four time periods. The econometric framework is applied to the light rail line in Charlotte, NC, and the analysis is conducted with two control groups to assess the robustness of the results. The results indicate that neighborhoods with a low socioeconomic index experienced large changes pointing towards gentrification due to the light rail line in comparison to the control groups, while in neighborhoods with medium socioeconomic index, the light rail line primarily impacted property prices.