How do major public transport investments induce gentrification? Evidence from consumer data

Abstract

Transit-induced gentrification is a context-dependent phenomenon. Since most empirical studies have analysed single transport investments, the moderating role of local contextual factors is not well understood. This study uses consumer registers and municipal data to investigate within which time frame and under which geographical and economic conditions, transport investments give rise to gentrification. We analyse 19 major bus rapid transit (BRT), light rail transit or tram (LRT) and local heavy rail transport interventions that opened in England and Scotland since 2009. Employing a quasi-experimental analytical framework, we detect some modest signals that transport investments attract new residents – especially residents from more affluent areas – and generate neighbourhood churn. Furthermore, we discover heterogeneous effects among the 19 schemes and find that gentrification occurs more often in local authorities that show lower economic growth and lower labour market participation. Neighbourhood churn appears to be higher in more dynamic local authorities with a stronger skills base.