%D 2024
%A Jesse Luimes
%L theses_frw4767
%T The effect of a new train station on housing prices in rural areas: evidence from Dronten
%X This paper models the effects of a new train station (light rail) on the housing prices in the (rural) municipality of Dronten, Flevoland. I distinguished two different effects: within 3500m proximity to the station and homes within the Dronten Municipality further away than 3500m from the station. I found that for homes within a 3500m perimeter from the station, the effect of a new train station is a significant decrease of 8%. The effect for homes within the municipality of Dronten further away than 3500m from the station is a significant decrease of 13% in the housing prices, although the parallel trend assumption was violated, leading to a biased estimation. The most important cause of this negative coefficient are the negative externalities associated with a train station. Additionally, it was found in a literature review that people use the train for enjoyment and a sense of independence, but demand increases when the service is reliable. The key recommendation is to replicate this study with different, more homogeneous data to ensure a holding parallel trends assumption.