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

Thu Mar 21, 2013 2:34pm EDT

* Reuters is not responsible for the content in this press release.

  WASHINGTON, DC, Mar 21 (Marketwire) -- 
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(R) (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. 

    The following table provides examples of the impact of high-frequency
public transportation in the five study 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. (Note: not shown in
the chart below but living near bus rapid transit in Boston resulted in
access to five times more jobs per square mile compared to the region.)
The table also illustrates that transportation costs are reduced by up to
$351 a month for households residing in the public transit shed. 



----------------------------------------------------------------------------           Access to # Jobs Per Square Mile    Monthly Transportation Costs 
----------------------------------------------------------------------------
           Public     Region   Public        Public    Region   Public
           Transit             Transit Shed  Transit            Transit Shed
           Shed                Advantage     Shed               Savings
----------------------------------------------------------------------------
Boston     170,334    57,563   2x more jobs  $746      $1,097   $351
----------------------------------------------------------------------------
San        172,581    56,933   3x more jobs  $746      $1,112   $346
Francisco
----------------------------------------------------------------------------
Chicago    139,908    56,300   2x more jobs  $775      $1,074   $300
----------------------------------------------------------------------------
Minn-      132,132    37,484   3x more jobs  $840      $1,164   $324
St.Paul
----------------------------------------------------------------------------
Phoenix    88,241     32,290   2x more jobs  $1,006    $1,181   $175
----------------------------------------------------------------------------


    
"Stable property values in areas with public transit access have a
number of policy implications," said Melaniphy. "As Congress and state
and local governments look for ways to accelerate economic growth, this
study shows that investing in public transportation is a boon to
revitalizing our economy."

    "When consumers choose a home, they also choose a lifestyle. Shorter
commutes and more walkable neighborhoods matter to a growing number of
people, especially those living in congested metro areas," said Yun.

    The American Public Transportation Association (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. This includes: transit systems; planning, design,
construction, and finance firms; product and service providers; academic
institutions; transit associations and state departments of
transportation. APTA is the only association in North America that
represents all modes of public transportation. APTA members serve the
public interest by providing safe, efficient and economical transit
services and products More than 90 percent of the people using public
transportation in the United States and Canada ride APTA member systems.

    The National Association of Realtors(R), "The Voice for Real Estate," is
America's largest trade association, representing 1 million members
involved in all aspects of the residential and commercial real estate
industries. For additional commentary and consumer information, visit
www.houselogic.com and http://retradio.com.

    

Contact: 
Mantill Williams
APTA
(202) 496-4869
mwilliams@apta.com

Sara Wiskerchen
NAR
(202) 383-1013
swiskerchen@realtors.org 

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