The age old adage in real estate of “location, location, location” added a twist during this past recession in regards to home values. A new study released by the American Public Transportation Association (APTA) and the National Association of Realtors® (NAR) reveals that during the last recession home values of residential property located near public transportation with high-frequency service performed 42% better on average.
NAR (National Association of Realtors) Chief Economist Lawrence Yun said, “Higher home values reflect greater market demand for areas near public transportation. 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.”
These areas can provide access to up to five times as many jobs per square mile compared to other areas in the given region. Additionally, these areas can have amenities such as lower transportation costs, increased walking access and more robust transportation choices. Transportation costs can be reduced up to $351 a month for households in these areas.
The data from this survey suggests that residential real estate near public transportation with high-frequency service will remain attractive to buyers going forward. Ultimately, this study illustrates that investing in public transportation can be a benefit to revitalizing the economy. Mr. Yun added, “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.”
For more information on this study, go to http://www.realtor.org/reports/the-new-real-estate-mantra-location-near-public-transportation