Rail Transit and Property Values
Number 1 - February 2003
The following reports and studies offer
evidence that light rail, heavy rail, and commuter rail can have a positive impact on the
values of residential and commercial properties. The report citations provide publisher
information and a brief summary of major findings. In all cases, readers of this Resource
Guide are encouraged to refer to the original source publication for complete
analysis.
Overview
Impacts of Rail Transit on Property Values.
Roderick B. Diaz, May 1999.
Recent studies of the impact of twelve rail projects (including both heavy rail and light
rail) throughout North America are compared. In general, proximity to rail is shown to
have positive impacts on property values. The relative increase in accessibility provided
by the new transit investment is the primary factor in increasing property values.
Source: APTA 1999 Rapid Transit Conference Proceedings Paper. Click Here for .pdf file
Dallas
An assessment of the DART LRT on taxable property valuations and transit
oriented development. Bernard L. Weinstein & Terry L. Clower,
September 2002.
Examining the 1997 to 2001 time period, the
study revealed that proximity to a DART station exerts a positive influence
on property valuations. Median values of residential properties increased
32.1 percent near the DART rail stations compared to 19.5 percent in the
control group areas. For office buildings, the increase was 24.7 percent
for the DART properties versus 11.5 percent for the non-DART properties.
Source: Center for Economic Development and
Research, University of North Texas. Text of the
report is available on APTA web site.
Santa Clara County
Transit's value-added: effects of light
and commuter rail services on commercial land values.
Robert Cervero & Michael Duncan, November 2001.
This research uncovered significant capitalization benefits on commercial properties of
proximity to rail transit. Being within walking distance of a LRT station in Santa Clara
County CA, increased land values on average by over $4.00 per square foot, or by around 23
percent. And for properties in commercial business districts and within a quarter mile of
a CalTrain commuter rail stop, the capitalization premium was even larger - over $25 per
square foot, or more than 120 percent above the mean property value.
Source: Transportation Research Board, 81st Annual Meeting
presentation January, 2002. Click here for PDF file.
Chicago
The effect of CTA and Metra stations on
residential property values. A report to the Regional Transporation Authority.
June 1997
The regional benefits or comparative advantages transit provides to neighborhoods by
improving accessibility, lessening congestion and reduction transportation costs make
residential locations served by transit more valuable than comparable locations without
transit service. Whether located in lower- or higher-income neighborhoods, proximity to
CTA and Metra stations positively affects the value of single family homes. Furthermore,
apartment properties located closer to train stations tend to realize higher rents and
occupancy levels than comparable apartments less conveniently-located to train stations.
Source: Gruen Gruen + Associates, San Francisco, CA http://www.ggassoc.com/
Boston
Impacts of commuter rail service as
reflected in single-family residential property values.
Robert J. Armstrong, Jr., 1994.
Single-family residential properties in metropolitan Boston, Mass, are examined. Results
indicate that there is an increase in single-family residential property values of
approximately 6.7 percent by virtue of being located within a community having a commuter
rail station. At the regional level there appears to be a significant impact on
single-family residential property values resulting from the accessibility provided by
commuter rail service.
Source: Transportation Research Record (no. 1466) pages 88-98.
Transportation Research Board, Washington DC.
Can be ordered from TRB Bookstore: http://www.nationalacademies.org/trb/bookstore/
San Francisco
Regional impact study commissioned by Bay
Area Rapid Transit District (BART)
July 1999.
The Sedway Group's review of studies on the benefits associated with BART service in the
Bay Area identified positive residential and office property impacts. Single family homes
were reported worth from $3,200 to $3,700 less for each mile distant from a BART station
in Alameda and Contra Costa counties. Apartments near BART stations were found typically
to rent for 15 to 26 percent more than apartments more distant from BART stations. The
average land price per squre foot for office properties also decreased as distance from a
BART station increased, from $74.00 per square foot within one-quarter mile of a station
to $30.00 per square foot for more than a half-mile distant.
Source: The Sedway Group, San Francisco, CA http://www.sedway.com/
Washington DC and Atlanta
Rail transit and joint development: Land market impacts
in Washington, DC and Atlanta.
Robert Cervero, 1994
Data were examined for five rail stations in the Washington DC and Atlanta
areas. Average office rents near stations rose with systemwide ridership;
joint development projects added more than three dollars per gross square
foot to annual office rents. Office vacancy rates were lower, average
building densities higher, and shares of regional growth larger in station
areas with joint development projects. Where regional market conditions
are favorable, rail transit appears capable of positive impacts on station
area office markets.
Source: Journal of the American Planning Association V60n1
(Winter, 1994) pages 83-94. American Planning Association 122 South Michigan
Ave., Suite 1600 Chicago, IL 60603 Phone: (312) 431-9100
San Diego
Land value impacts of rail
transit services in San Diego County. Robert Cervero & Michael
Duncan, June 2002.
This study found appreciable land-value premiums for different land uses
in different rail-transit corridors in San Diego County. The most appreciable
benefits were: 46% premiums for condominiums and 17% for single-family
housing near Coaster commuter rail stations in the north county; 17% and
10% premiums, respectively, for multifamily hosing near East Line and
South Line Trolley stations; and for commercial properties, 91% premiums
for parcels near downtown Coaster stations and 72% for parcels near Trolley
stations in the Mission Valley.
Source: National Association of Realtors web site: http://www.realtors.org/smartgrowth/
Related Press Coverage
The Boston Globe: Rail Lines Boosting
Home Values. January 12, 2003.
Analysis of data of home prices between 1995 and 2001 shows that the median
price of single-family homes nearly doubled in 19 communities after they
gained MBTA commuter rail service.
New York Times: Service Upgrade by N.J. transit fuels gains
around stations. November 3, 2002.
New Midtown Direct trains are generating growth. In Morristown for
example, $1 million town houses are being built near the Morristown station,
and over $200 million in private development in the town has occurred.
Charlotte Observer: Commuter rail line drives up price of land.
July 7, 2002.
Land values along the South End leg of the light rail corridor due to
open in 2006 have doubled, and in some cases tripled, in the past four
years.
Wall Street Journal: Railway agencies play bigger
real-estate role. May 4, 2001 page B12.
Transit villages sprout around train stations as part of tranisit-oriented
development in Los Angeles.
Chicago Daily Herald: Why Metra is booming.
March 20, 2001 page 1.
Residents are flocking around suburban downtowns revitalized by new
rail amenities and nearby real estate development.
St. Louis Commerce: Magnetic
Metrolink February 2001.
The light rail system is attracting new investment
that is reviving once faded neighborhoods while adding value to already
healthy ones.
APTA Information Center
info@apta.com
Some of these pages may include links to documents in the Adobe PDF format. Please download the Adobe PDF reader if you have not already done so.
