Tracking How the Housing Market Reacts to the Kruunusillat Light Rail Project in Helsinki, Finland: An Analysis of the Effects on Housing Prices in Laajasalo During the Announcement and Construction Phases
Sieberg, Torik (2026)
2026
Kauppatieteiden maisteriohjelma - Master's Programme in Business Studies
Johtamisen ja talouden tiedekunta - Faculty of Management and Business
Hyväksymispäivämäärä
2026-05-26
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202605256243
https://urn.fi/URN:NBN:fi:tuni-202605256243
Tiivistelmä
Investments in public transportation infrastructure can affect housing prices in the areas they impact. This study investigates the impact of the Kruunusillat light rail infrastructure project on housing prices in Helsinki, Finland’s suburb of Laajasalo. Using a hedonic difference-in-differences event study specification on comprehensive real estate transaction data from the Central Federation of Finnish real estate Agencies (KVKL), this study found no significant price effect on housing attributable to the project during the announcement and construction phases of the project.
Additional heterogenous treatment effect models showed effects of between a 0.24% and 0.37% reduction in square meter price per 100-meter distance from the nearest Kruunusillat proposed tram stop for the construction phase. However, these effects did not survive subsequent sensitivity analyses suggesting weak identification of the causal parameter.
This study contributes to the literature examining the link between transportation infrastructure and the accessibility benefits they bring, and housing prices. The largest contribution of this study relates to the employed bounding by relative magnitude sensitivity analysis method, which is novel to the literature related to transportation project benefit assessment.
Additional heterogenous treatment effect models showed effects of between a 0.24% and 0.37% reduction in square meter price per 100-meter distance from the nearest Kruunusillat proposed tram stop for the construction phase. However, these effects did not survive subsequent sensitivity analyses suggesting weak identification of the causal parameter.
This study contributes to the literature examining the link between transportation infrastructure and the accessibility benefits they bring, and housing prices. The largest contribution of this study relates to the employed bounding by relative magnitude sensitivity analysis method, which is novel to the literature related to transportation project benefit assessment.