Does bike sharing increase house prices? Evidence from micro-level data and the impact of COVID-19

Zhou Z, Li H, Zhang A. Does bike sharing increase house prices? Evidence from micro-level data and the impact of COVID-19. Journal of Real Estate Finance and Economics, 2022, forthcoming.

36 Pages Posted: 24 Jun 2019 Last revised: 27 Jan 2022

See all articles by Zhengyi Zhou

Zhengyi Zhou

Shanghai University of Finance and Economics

Hongchang Li

Beijing Jiaotong University

Anming Zhang

University of British Columbia (UBC) - Sauder School of Business

Date Written: September 3, 2020

Abstract

With unique datasets, this paper studies the externalities of bike sharing by examining house prices. We find that, for neighborhoods that are relatively far from subway stations, house prices increase with the usage intensity of shared bikes. This indicates a positive externality of bike sharing as a complement to the subway network. For neighborhoods near subway stations, however, house prices decrease with the intensity, especially if we exclude neighborhoods with a high-quality management service or if we look at the neighborhoods far from City Management Teams. This indicates a negative externality, which may be caused by the misplacement of shared bikes. Since the breakout of COVID-19, both the positive and negative externalities have become more capitalized into house prices; time-on-market also exhibits consistent patterns. This suggests that the profit sustainability of bike sharing has increased post the COVID-19 pandemic.

Keywords: Dockless bike sharing; Public transportation; House price; Public space misuse; COVID-19; China

JEL Classification: R42,P25,D62

Suggested Citation

Zhou, Zhengyi and Li, Hongchang and Zhang, Anming, Does bike sharing increase house prices? Evidence from micro-level data and the impact of COVID-19 (September 3, 2020). Zhou Z, Li H, Zhang A. Does bike sharing increase house prices? Evidence from micro-level data and the impact of COVID-19. Journal of Real Estate Finance and Economics, 2022, forthcoming., Available at SSRN: https://ssrn.com/abstract=3409003 or http://dx.doi.org/10.2139/ssrn.3409003

Zhengyi Zhou (Contact Author)

Shanghai University of Finance and Economics ( email )

100 Wudong Road
Shanghai, Shanghai 200433
China

Hongchang Li

Beijing Jiaotong University ( email )

No.3 of Shangyuan Residence Haidian District
Beijing, 100089
China

Anming Zhang

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada

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