Local and network effects of new high-speed rail on urban residential land prices: A case study of Zhongyuan Urban Agglomeration

High-speed rail (HSR) infrastructure development has fundamentally reshaped urban economics and spatial organization of economic activities. The opening of new HSR lines not only enhances transportation convenience and locational advantages of cities along the route but also generates significant network effects at the regional level, thereby influencing the economic activity structure and land valuation patterns of HSR cities at different scales. While much of the existing literature has focused on the direct or local effects of HSR on individual cities, there has been relatively limited exploration of the broader network effects generated by HSR networks. This paper focuses on analyzing both the local and network effects of newly constructed HSR lines on cities, providing a comprehensive framework for understanding HSR’s multidimensional impacts. An empirical study examines the impact of the Zhongyuan Urban Agglomeration’s HSR network development on residential land prices at different scales. By combining the PSM-DID model with multilevel data analysis, the empirical findings reveal a dual mechanism through which new HSR lines influence land value. First, we identify a local effect, where cities directly connected by new HSR lines experience an average increase of 11.2% in residential land prices. This increase can be attributed to the improved accessibility, the enhanced locational appeal, and stronger development expectation among investors and local stakeholders. Second, we uncover a network effect: city, as a part of the broader HSR network, but not is necessarily on the newly opened line, also experiences a positive impact, with residential land prices increasing by approximately 2% on average. This finding highlights the importance of network connectivity and suggests that HSR infrastructure generates externalities to transcend the immediately affected localities. Furthermore, the magnitude of these network effects varies significantly across cities of different administrative levels. Prefecture-level cities benefit more substantially from the network effect compared to county-level cities. This heterogeneity shows the uneven spatial distribution of HSR-related benefits. Urban hierarchy determines how effectively cities can leverage their network position. This study demonstrates that the existence of both local effect and network effect of HSR and reveal the multidimensional and spatially heterogeneous nature of HSR effects. These results provide critical insights for regional planning and infrastructure investment. Policymakers should consider network-wide impacts in designing strategies to promote balanced urban development through transportation infrastructure expansion.