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While numerous studies have shown that rail transit investment increases property value close to stations, not much has been said on the transit-induced indirect changes in neighborhood amenities and their role in property market's response to transit investment. The rapid expansion of Beijing's subway system over the last decade provides a precious opportunity to research the transit—retail amenities—property value connection. This paper enhances our knowledge by studying how local consumer amenities react to urban rail transit development and subsequently reflect in consumers’ willingness to pay. Using multiyear subway construction history, station neighborhoods’ restaurant activities and rental housing transactions in Beijing, we find a new subway station positively contributes to the number of new openings and the diversity of nearby restaurants. The changes in neighborhood restaurant activities capture 20–40% of the home value appreciation following the construction of a subway station. Our findings support the “multiplier effect” of neighborhood retail amenities in rail transit's impact on local home value. The public investment in transit and the private market responses complement each other and together contribute toward urban quality of life, as revealed by the appreciation in local property values. [ABSTRACT FROM AUTHOR]