Saturday, July 20, 2013

Empirical Proof That Transit Protects or Enhances Your Property Values

By Melanie Reuter

As population increases and a new demographic enters the housing market, there is a growing interest in development around transit nodes. To address quality of life issues connected to traffic congestion, pollution and the rising costs of commuting by vehicle, city planners are encouraging densification around LRT stations in particular.

Increasingly, stakeholders are realizing the value of locating at transit nodes. In recently published research in the US for example, residential properties maintained their values during the latest recession, whereas other properties plummeted in value . Commercial real estate experiences an even greater premium than residential real estate. As evidenced all over North America, consumers are willing to pay more to live in areas that are walkable, accessible to transit and have a mix of residential and commercial and employment opportunities.

Recent research conducted in five major regions in the US demonstrated exceptional findings: properties located within the vicinity serviced by fixed guideway transit (Light Rapid Transit (LRT) such as Vancouver’s SkyTrain or heavy and commuter rail, such as the WestCoast Express) outperformed the region as a whole by 41.6%. If values dropped across the board, as evidenced in almost all communities in the US, those properties within the “transit-shed” experienced a smaller drop.

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