Property values better near public transportation, study says

A new study by the American Public Transportation Association (APTA) and the National Association of Realtors® (NAR), says that home values performed 42 percent better during the last recession when they were located near public transit services.

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

“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, in a statement.

“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,” said Melaniphy.

“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 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.

“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.