Analyzing the Effects of Infrastructure Expansion and Urbanization on Housing Prices: A Spatiotemporal Approach across Chinese Cities

Abstract

This study examines the impacts of transportation infrastructure expansion and urbanization on housing prices in 285 cities across China. Utilizing a dynamic spatial lag model and a spatiotemporal geographically weighted regression model, it analyzes the spatiotemporal heterogeneity of housing prices. Findings indicate that the actual average housing prices of cities are influenced by competitive states with neighboring cities’ prices; a 10% increase in highway length in a city leads to short-term and long-term decreases in actual average housing prices by approximately 0.46%–0.615% and 1.118%–1.503%, respectively; every 1% increase in urbanization rate results in an approximately 0.001%–0.0014% increase in actual average housing prices. This paper provides new insights into understanding the dynamics of urban development and housing prices.