Residential Property Values and New Jersey Transit Village Program

Abstract

Since 1999, 23 New Jersey transit villages have been designated in New Jersey municipalities, with the intention of intensifying development around rail stations and bus hubs. As one test of the effectiveness of this state effort, the appreciation in residential property values is investigated and compared with that in other municipalities in the state. Some limited positive evidence is found to support the New Jersey transit village designation. Econometric analysis of the change in average residential sales price over 9 years finds an association but cannot establish a causal effect. Case study analysis of selected New Jersey transit villages suggests that the forethought, commitment, and political will required to apply for transit village status may be what sparks municipal development rather than the designation itself.

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