Rail Location Neighbourhoods: Proximity Premiums and Residential Sorting in the Sydney Metropolitan Area

Abstract

We examine the relationship between rail accessibility and the pattern of demographic characteristics at long-established Rail Transit Served Communities (RTSCs). The analytical methods involve the juxtaposition of property premium estimates and assessment of spatial effects on demographic composition. Despite finding considerable property premiums associated with access to rail transit across metropolitan Sydney (NSW, Australia), we report little evidence of prevailing gentrification or displacement. The demographic groups commonly linked to gentrification, including high-income and professionals, are not found to dominate areas of high rail accessibility to nearby established rail stations. Only those with advanced educational qualifications are shown to increase in concentration with closer access to rail transit.

Keywords: Residential Sorting, Sydney, Public Transit, Transport, House Prices