The New Real Estate Location, Near Public Transportation
A study released by the American Public Transportation Association (APTA) and NAR reveals that during the last recession, residential property values performed 41 percent better on average if they were located near public transportation with high-frequency service.
Studies have shown that consumers are willing to pay more for housing locatedin areas that exemplify new urbanist principles or are “traditional neighborhood developments.” These neighborhoods are walkable, higher density, and have a mix of uses as well as access to jobs and amenities such as transit.This analysis investigates how well residential properties located in proximity to fixed-guideway transit have maintained their value as compared to residential properties without transit access between 2006 and 2011 in five regions: Boston,Chicago, Minneapolis-St. Paul, Phoenix, and San Francisco. The selection of these places for the study regions provides not only a geographic distribution, but also an illustrative sample of the types of fixed-guideway transit systems in the US.Minneapolis-St. Paul and Phoenix have newer light rail systems, while Boston,Chicago, and San Francisco are mature systems dominated by heavy and com-muter rail. Additionally, Boston is also home to one of the earlier BRT lines.
- Transit type had an effect on the resilience of property values, which benefited more from transit that was well connected and had a higher frequency of service.
- Stations with higher levels of transit access saw the most price resilience within and across regions.
- No consistent trends have emerged with regards to residential property type.
- For most property types, the transit shed outperformed the region, and in Boston and Chicago this holds true for all property types.
- In addition to more resilient residential property values, households living in transit sheds had better access to jobs and lower average transportation costs than the region as a whole.
The relative stability of property values in areas with transit access has a number of policy implications. It helps to provide consumers and planners with better information, and encourages greater investment in transit and more sustainable development patterns.