May
02

Public Transit and Property Values go Hand in Hand, Study says

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The real estate mantra used to be location, location, location, but according to NAR and APTA, the new mantra is “location, location, location near public transportation.” 

During the housing slump, properties in neighborhoods with accesses to public transit performed much better than properties in other communities, according to a study by the Center for Neighborhood technology “The New Real Estate Mantra:  Location Near Public Transportation”.     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 for buyers going forward.

 According to the study commissioned by the National Association of Realtors and the American Public Transportation Association, property values in areas with access to transit including commuter rail, heavy rail, light rail, bus rapid transit and ferry service performed 42% better than homes further from public transit in the same regions from 2006 to 2011.  The findings “support investment in transit and encourage development in location efficient areas, benefiting individual property owners and support a more resilient tax base”.   The study shows that “consumers are choosing neighborhoods with high-frequency public transpiration because it provides access to up to 5 times as many jobs per square mile as compared to other areas in a given region, as well as lower transportation costs, walkable areas and robust transportation choices, “ according to APTA President and CEO Michael Melaniphy.

The Census Bureau reports that 23% of workers with 60 minutes or more commute time use public transit compared of 5.3% of all workers.   About 10.8 million Americans have commutes of more than 60 minutes and more than half a million full time workers have commutes of 90 minutes or more. 

 

Based on articles by Inman News and the National Association of Realtors

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