Housing Prices Higher When Near Public Transportation

APTA is a nonprofit international association of 1,500 public and private sector organizations, engaged in the areas of bus, paratransit, light rail, commuter rail, subways, waterborne services, and intercity and high-speed passenger rail.

A recent study completed by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR), calculated residential property values during the last recession; the results indicate that home values performed nearly 42 percent better when located near public transportation.

"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, walk-able areas and robust transportation choices."

The study investigated how well residential properties located in a half-mile proximity to high-frequency public transportation, which includes subway (heavy rail), light rail and bus rapid transit, performed in holding their value during the recession compared to other properties in a given region.

Although residential property values declined substantially between 2006 and 2011, properties close to public transit showed significantly stronger resiliency.

Results from the five studied regions are as follows:

Boston - residential property in the rapid transit area outperformed other properties in the region by 129 percent.
Chicago - public transit area home values performed 30 percent better than the region.
San Francisco - 37 percent, Minneapolis-St Paul, 48 percent and Phoenix 37 percent.

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.

"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."

This table provides examples of the impact of high-frequency public transportation in the five studied areas. Comparisons to the public transit shed versus the region show that the public transit shed provides access in some instances to more than three times more jobs per square mile as compared to other areas in a given region. The table also illustrates that transportation costs are reduced by up to $351 a month for households residing in the public transit shed.



For more information about housing statistics, please visit realtor.org.

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