Neighborhoods located within one-half mile of public transit services outperformed those in areas farther from public transit based on several factors, according to a report released by the American Public Transportation Association (APTA) and the National Association of Realtors®.
“The Real Estate Mantra – Locate Near Public Transportation” highlighted the critical role public transportation plays in determining real estate values, revealing that commercial and residential real estate market sales thrive when residents have mobility options close by.
The report explored seven metropolitan regions, including Boston, Los Angeles, and Seattle, that provide access to heavy rail, light rail, commuter rail, and bus rapid transit. Residential properties within these areas had a higher median sale price of 4% to 24% between 2012 and 2016, the report found. Commercial property values also experienced gains in the studied cities, where four of the regions saw median sales price per square foot increase between five and 42 percentage points in areas close to public transit.
Data also showed that residents of transit-oriented areas experience lower transportation costs, have higher access to jobs and are less likely to own cars. Transportation costs in transit-oriented areas are significantly lower than other regions, with an average annual savings of $2,500 to $4,400 for the typical household. One in four households near transit do not own a vehicle, according to the study.
The seven sample areas were examined by residential and commercial sales performance, rent, neighborhood characteristics, local government interventions, and housing affordability for properties near transit.
“Access to public transportation is a hugely valuable community amenity that increases the functionality and attractiveness of neighborhoods, making nearby communities more desirable places to live, work, and raise a family,” said NAR 2019 First VP Charlie Oppler, who spoke at a press conference held during APTA’s TRANSform Conference in New York. “The results of our report, conducted over multiple years alongside the American Public Transportation Association, should reiterate to policymakers at all levels of government the importance of investing in modern, efficient infrastructure that facilitates growth and helps our nation keep pace in a rapidly evolving world.”
To read the full study, click here.