Evidence that Housing Near Transit is a Good Investment

Friday, March 22nd, 2013 at 5:57 pm

Residential real estate sales prices for properties located near transit are healthier and more resilient than in the broader metropolitan region. That’s the conclusion of The New Real Estate Mantra: Location Near Public Transportation, written by CNT and commissioned by the American Public Transportation Association (APTA) and the National Association of Realtors® (NAR). Although residential real estate prices dropped during the recession in the five regions studied (2006 to 2011 in Boston, Chicago, Minneapolis-St. Paul, Phoenix, and San Francisco), average sales prices for residential properties within walking distance of a heavy rail, light rail, commuter rail, and Bus Rapid Transit (BRT) station outperformed the region by an average of 42 percent.

In Boston, transit-served areas (transit sheds) outperformed the region by a staggering 129 percent. In Chicago, home values in transit served areas performed 30 percent better than the region; in San Francisco, 37 percent; Minneapolis-St Paul, 48 percent; and in Phoenix 37 percent.

Transit type had an effect on the stability of average residential sales prices, which benefited more from transit that was well connected and had a higher frequency of service. Stations with higher levels of transit access saw the most price resilience within and across regions. In addition to having higher frequency service and better transit connectivity, these stations also tend to be located in areas that are more walkable, have higher residential density, and better access to jobs.

In addition to more stable residential sales prices, data from CNT’s Housing + Transportation (H+T®) Affordability Index showed that households living in transit sheds had better access to jobs and lower average transportation costs than the region as a whole.

“This study reinforces the body of research indicating the benefits of robust, convenient, and affordable transit systems,” said CNT President Scott Bernstein. “What we see here is that residential proximity to transit not only reduces costs of living and lowers environmental impacts, it also translates to stronger household, municipal and regional economies.”

“Stable property values in areas with public transit access have a number of policy implications,” said APTA President and CEO Michael 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.”

“We are excited to be able to present this initial research, and look forward to expanding it with further analysis using more datasets in more places,” said Bernstein. “This research has the potential to uncover the full value of transit on commercial and mixed use properties, as well.”

The New Real Estate Mantra: Location Near Public Transportation builds off of CNT’s groundbreaking research and publications on issues related to Transportation & Community Development, and Transit-Oriented Development.

Full report: The New Real Estate Mantra: Location Near Public Transportation

Appendix A

Appendix B

A few notes on the method:

• Transit station zones may be overlapping, due to proximity of transit stations. Transit sheds are the aggregate area covered by all transit zones. As a result, transit sheds are not an average of all transit station zones.
• While individual zones may overlap, properties are not double-counted in the transit shed.
• The Employment Access Index provides a measure of the quantity and proximity of jobs to a given place, not a simple measure of jobs per square mile.
• This examination of sales prices of all residential property types in aggregate provides an overall picture of how all residential sales activity contributes to the economy. This is a valuable reference for understanding the potential for value capture, tax revenue, and local investment.
• Averages sales prices, where available, are also broken out in the report for single-family, town homes, condos, and apartments.

Comments (1) »

Documenting the Bloomingdale Trail Transformation

Friday, February 15th, 2013 at 4:03 pm

Photo credit: Patrick Putze

For nearly a century the Bloomingdale freight line has rolled across and above the City’s Northwest side. Today the tracks are aligned to transform the Bloomingdale into an elevated, mixed-use, linear park and trail running through the heart of Chicago, connecting neighborhoods, the river, and Chicago’s great park system. Since 2003, Friends of the Bloomingdale Trail have been advocating for this conversion of the rail line into Chicago’s next great park. Many community groups and public agencies have participated in a community charrette that led to the development a framework plan for this major endeavor.

CNT is pleased to be hosting, Reframing Ruin: A Prelude to the Bloomingdale Trail,  a photography exhibition presented by Friends of the Bloomingdale Trail and The Trust for Public Land. The exhibit showcases the community’s documentation of the future trail, its relationship to the diverse neighborhoods it cuts through, and how we currently interact with this stretch of land through photography.

The exhibit will be housed at CNT Energy location, 1741 N. Western Ave. The exhibit will run until August 22, by appointment only. Contact info@bloomingdaletrail.org to schedule a visit. We are no longer taking RSVPs: the opening reception is completely sold out.

Learn more about the Bloomingdale Trail and its development here.>>

Learn more about the exhibit here.>>

Check out this preview video of the exhibit here.>>

Comments (0) »

New Report on TOD Typology Strategy for Allegheny County

Friday, February 8th, 2013 at 2:28 pm

The Center for Transit-Oriented Development (CTOD) today released results of a year-long study into the potential for transit-oriented development to unlock economic, environmental and fiscal benefits for Pittsburgh and Allegheny County. The report, “Transit-Oriented Development Typology Strategy for Allegheny County,” was commissioned by the  Pittsburgh Community Reinvestment Group under the auspices of its GoBurgh initiative and funded by the Heinz Endowments.

The study revealed some interesting findings about what is needed to support TOD in Pittsburgh, including new sources of funding for smaller scale infrastructure improvements such as pedestrian pathways and signage to help link the stations to nearby communities. It also identifies priority areas for TOD investments out of 100 stations in the rail, busway, and incline transit network, based on the readiness of those stations to be transformed into walkable, transit supportive communities. The study prioritizes stations based on three types of investments: infrastructure, new development, and building the capacity of community groups, which is a specialty of the Pittsburgh Community Reinvestment Group and its GoBurgh initiative.

CTOD is a partnership of CNT, Reconnecting America, and Strategic Economics. For more information visit CTOD’s website here.>>

Copies of the report can be downloaded here.

Read full press release >>

Comments (0) »