Home Values Performed 42 Percent Better When Located Near Public Transportation During Last Recession

Source: National Association of Realtors

WASHINGTON (March 21, 2013) - Location, location,
location near public transportation may be the new real-estate mantra according
to a new study released today by the American Public Transportation Association
(APTA) and the National Association of Realtors^® (NAR). Data in the study reveals that
during the last recession, residential property values performed 42 percent
better on average if they were located near public transportation with
high-frequency service.

“When homes are located near public transportation, it is
the equivalent of creating housing as desirable as beach front property,” 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 well being.”

The study, The New Real-Estate Mantra: Location near Public
Transportation, investigates how well residential
properties located in a half-mile proximity to high-frequency public
transportation or in the “public transit shed” have performed in holding their
value during the recession compared to other properties in a given region.

While residential property values declined substantially
between 2006 to 2011, properties close to public transit showed significantly
stronger resiliency. The following are a few examples from the study: In
Boston, residential property in the rapid transit area outperformed other
properties in the region by an incredible 129 percent. In the Chicago public
transit area home values performed 30 percent higher than the region; in San
Francisco, 37 percent higher; Minneapolis-St Paul, 48 percent; and in Phoenix
37 percent higher.

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.

http://www.realtor.org/news-releases/2013/03/home-values-performed-42-percent-better-when-located-near-public-transportation-during-last