Accessibility and Housing Price Resilience Evidence from Limited-Access Roadways in Florida

This paper investigates the hypothesis that houses located in proximity to limited-access roadways exhibit a resilience to price decline during and after exogenous market downturns. A quasi-experimental design was used to look for empirical evidence of price differentials before, during, and after construction and operation of network improvements. A spatial autoregressive difference-in-differences estimator with spatial disturbances was used to find evidence of price resilience in the aftermath of the real estate bubble affecting the local and state economy. Single-family homes exhibited a price premium ranging from 4.6% to 5.2% over their controls. These premium differentials were realized 4 to 5 years after the opening of the facilities and after the U.S. real estate market downturn. This paper contributes to the empirical literature by providing a quasi-experimental approach to the selection of comparable parcels for spatial hedonic regression.