Study: Home values most resilient near public transportationby Marcie Geffner
Homebuyers know schools, jobs, shopping centers and other location-based amenities are important factors to consider when choosing where they want to live. But one other factor–public transportation–should also be high on the list for those who want to maximize the value of their biggest investment.
New study compares homes values, public transportation
That’s according to a recent study by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR).
The study, “The New Real Estate Mantra: Location Near Public Transportation,” investigated how well residential properties located within a half-mile of a subway, heavy rail, light rail or bus rapid transit system held their value during the Great Recession compared with other properties in the same region, but further away from public transit.
“Emerging research has indicated that urban form and transportation options have played a key role in the ability of residential properties to maintain their value since the onset of the recession. Studies have shown that consumers are willing to pay more for housing located in 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,” the study said.
The study looked at five regions that illustrated various types of high-frequency public transit systems throughout the U.S. On average, property values performed 42 percent better if the property was located near public transportation with high-frequency service.
The findings for the five cities are as follows:
- Boston: Homes near rapid transit outperformed other properties by 129 percent
- Minneapolis-St Paul: Homes near public transit outperformed other properties by 48 percent
- San Francisco and Phoenix: Homes near public transit outperformed other properties by 37 percent
- Chicago: Homes near public transit outperformed other properties by 30 percent
In a statement, APTA CEO Michael Melaniphy said homes located near public transportation offered access to up to five times as many jobs per square mile compared to other areas in a given region.
“Other attractive amenities in these neighborhoods include lower transportation costs, walkable areas and robust transportation choices,” Melaniphy said.
The study also found that transit type had an effect on the resilience of property values. Specifically, stations with higher levels of transit access saw the most price resilience within and across regions. Homes within transit sheds also gave residents better access to lower average transportation costs.
“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,” said Lawrence Yun, chief economist for the NAR.