Property values better near public transportation
According to a new study1 by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR), during the last recession, property values were 42 percent better on average when located near public transportation with high-frequency service.
“When homes are located near public transportation, they are among the most valuable and desirable in the area,” said APTA President and CEO Michael Melaniphy. “This study shows that consumers are choosing neighborhoods with high-frequency public transportation because it provides access to up to five times as many jobs per square mile as compared to other areas in a given region. Other attractive amenities in these neighborhoods include lower transportation costs, walkable areas and robust transportation choices.”
“Higher home values reflect greater market demand for areas near public transportation,” said NAR Chief Economist Lawrence Yun. “Transportation plays an important role in real estate and housing decisions, and the data suggests that residential real-estate near public transit will remain attractive to buyers going forward. A sound transportation system not only benefits individual property owners, but also creates the foundation for a community’s long-term economic wellbeing.”
Property values varied according to region
The study looked at how well property values performed within the “public transit shed” which is within a half-mile of high-frequency public transportation, noting that values held better in these areas during the recession compared to other properties in a given region.
The study looked at five regions, which illustrate the types of high-frequency public transit systems throughout the U.S. High-frequency public transportation includes subway (heavy rail), light rail and bus rapid transit. This sample accurately projects the nationwide average (42 percent) variance among properties located near high-frequency public transportation and those that are located further away from public transit.
Walkability, public transit system becoming important again
“Stable property values in areas with public transit access have a number of policy implications,” said Melaniphy. “As Congress and state and local governments look for ways to accelerate economic growth, this study shows that investing in public transportation is a boon to revitalizing our economy.”
“When consumers choose a home, they also choose a lifestyle. Shorter commutes and more walkable neighborhoods matter to a growing number of people, especially those living in congested metro areas,” said Yun.