How Public Transportation Can Increase Your Home's Value
You're looking for a new place to live and weighing all the factors determining a home's value. Sure, the number of bedrooms and overall square footage matter, but so does the neighborhood—especially how well-connected it is. When a community has access to high-quality public transit, home prices rise. Why is that?
Public transportation provides opportunities. It gives you freedom and flexibility in how you live your life. You can easily connect to work, nightlife, healthcare, education, and recreation. Affordable and reliable transit access makes that possible if you want to ditch your car and avoid traffic and parking hassles.
For these reasons, homes within a half mile of bus and rail stops often sell at a premium. Transit boosts your quality of life and expands your world, so you'll pay more to tap into that—as much as $5,000 to $50,000 more for a house, according to some research.
So, the next time you're hunting for a new place to call home, don't just consider the house itself. Think about your connection to the surrounding community and how transit can take you where you want to go. Access equals value, so make public transportation a priority. Your wallet and lifestyle will thank you.
Easy Access: How Public Transit Increases Property Value
Easy access to public transit is a significant selling point for any property. When a home is within walking distance of bus stops, train stations, and ride-sharing pick-up spots, its value instantly increases.
Why is this the case? For starters, not having to rely on a personal vehicle to get around saves money on gas, parking, and maintenance. The time you gain from avoiding traffic and not having to find parking also adds value.
Public transit provides easy access to cultural attractions like museums, theaters, shopping districts, restaurants, and nightlife. Home buyers want entertainment and amenities at their fingertips, easy to reach. They're willing to pay more for a home with a location that allows for a lifestyle not dependent on driving.
Properties situated along public transit routes are also appealing as rentals. Tenants appreciate the convenience and lower cost of living. This demand translates into higher rents landlords can charge and a higher sale price when they decide to sell.
Access to alternative transit modes is increasingly crucial in cities aiming to reduce traffic and pollution. Homes where people can use these eco-friendly options will become more desirable and valuable.
If easy access to busses, trains, and bike-sharing is a priority in your next home search, be prepared to pay a premium. But take comfort knowing that the premium will pay off down the road thanks to higher resale value, lower transportation costs, and a location that enables an active lifestyle less reliant on a car. The benefits of public transit access are well worth the investment!
Home Price Impacts of New Subway Stations
So you're considering buying a place near one of the new subway stations. Smart move. Studies show home values can increase up to 30% for properties within a half mile of public transit.
Take the new Green Line extension in your city, for example. After the new stations opened, nearby home prices shot up almost overnight. Homes within a 10-minute walk of the new stations saw the most significant bump, around 25-30% on average. The farther away from the station, the smaller the increase, but in general, being within a half-mile radius still netted sellers a sizable 10-15% gain.
Why the price hike? Easy access to transit means an easy commute, less traffic hassle, and freedom from parking costs. Living near public transportation is a desirable amenity for many buyers, especially younger folks and families. Developers are eager to build new housing and commercial spaces around these transit hubs. More development means more buzz, amenities, and an upward pressure on home values.
Your home value will likely benefit if a new subway station, bus rapid transit stop, or light rail station opens near you. If you're looking to buy, hopping on the opportunity early will put you in a position to gain severe equity as the area develops over the next several years. For the savvy homeowner or buyer, a location near public transit is key to tapping into a home's full value potential.
Millennials and Downsizing: Why Public Transit Matters More Than Ever
For younger generations today, access to public transit is increasingly important in where they choose to live. If you're a millennial looking to downsize to a smaller space in an urban area, proximity to bus and rail lines should be at the top of your list of priorities when searching for a new place.
Convenience and affordability
Public transportation provides an easy, budget-friendly way to get around town without the high costs of owning and maintaining a vehicle. For millennials facing student loan debt and a competitive job market, saving money on transportation means more available funds for rent, experiences, and building a financial cushion. With apartments near transit hubs, you can give up designated parking spots in favor of ride-sharing or bike-sharing programs.
Choosing to use public transit over single-occupancy vehicles is better for the environment. By reducing emissions and traffic congestion, you can feel good about lowering your carbon footprint when traveling to work, running errands, or meeting up with friends. For the eco-conscious millennial, living in an area with access to bus and rail networks aligns with the values of sustainability and minimizing waste.
Riding public transit allows one to stay connected - whether for work or pleasure. With WiFi and cellular service available on many transit systems, you can use your commute time to send emails, get some light job done, or stream your favorite podcast. For nights out, you can avoid paying high rideshare surge pricing by taking a bus or train and texting with friends to meet them at your destination.
Living near public transportation as a millennial makes sense. You'll gain back valuable time, save money, and feel good knowing you're doing your part for the environment. When searching for housing, look at the bigger picture and consider how access to transit can enrich your life and connect you to your community.
Planning for Success: Transit-Oriented Development
Transit-oriented development, or TOD, refers to residential and commercial centers designed around public transit systems like buses, trains, and bike-sharing. TODs make it easy for residents and workers to commute via transit instead of driving, which reduces traffic and environmental impact.For homeowners and homebuyers, TODs are appealing for several reasons:
- Convenience. Living near high-quality public transit means less time stuck in traffic and less money spent on gas or parking fees. Everything you need is easily accessible by bus, train, or bike.
- Reduced costs. Households in TODs spend less on transportation, saving $3,000 to $4,000 per year compared to the average home. This frees up more of your budget for housing costs or other priorities.
- Higher home values. Homes located within a half mile of public transit stations have been shown to appreciate more over time than the overall area. This is due to the high demand for the convenience and lifestyle TODs provide.
- Amenities. TODs often incorporate amenities like restaurants, shops, parks, and entertainment within walking distance. This enhances your overall quality of life by providing destinations you can easily access and community places to connect with others.
For cities and developers, TODs provide an opportunity to reduce sprawl, minimize traffic and pollution, and create vibrant, sustainable communities. Transit-oriented development benefits residents and the environment when designed well through more efficient land use and transportation.
If access to high-quality public transit and an eco-friendly lifestyle appeal to you, consider looking for your next home in an area with opportunities for transit-oriented development. You'll get where you need to go with less hassle and enjoy the many benefits of a community built around sustainable transportation options.
For Homebuyers, Location Does Matter
For homebuyers, location determines value. Homes near public transit like bus and rail lines are almost always more valuable and in higher demand. Here are a few reasons why:
Being within walking distance of a bus stop or train station means fewer hassles getting around. You can easily commute to work without the stress of driving and parking. It also gives you the flexibility to get places when you can't or don't want to drive, like after a night out or if your vehicle is in the shop. The convenience factor alone translates to buyers willing to pay higher prices.
Good access to public transit also provides mobility for those unable to drive, like students, elderly residents, or disabled individuals. This makes the location attractive to a broader range of potential buyers and tenants, which keeps demand and value high.
Using public transit instead of driving can save thousands per year in gas, parking, and vehicle maintenance costs. These savings get factored into what people can afford to pay for housing near transit lines. Proximity to bus and rail networks is especially valuable for those on tight budgets looking for affordable and practical housing options.
For environmentally-conscious homebuyers, living near public transit is ideal. It allows for a minimal-impact lifestyle by reducing dependence on personal vehicles. This eco-friendly appeal adds to a location's overall desirability and value.
Access to public transit significantly influences residential property values for many reasons. If buying or selling a home, consider the importance of location relative to bus and rail lines. Look within a half mile of major transit hubs and corridors for maximum value and appeal. Your wallet and the planet will thank you!
You should pay attention the next time your city council considers a new bus route or rail line. While public transit may benefit only those who use it, the impact is far broader. Improved transit access means your property value will likely climb over the coming years. You'll have an easier time selling your home down the road and may even find new amenities and businesses popping up in your neighborhood.
For those looking to buy, do your homework and look for homes near existing or planned transit lines. You'll be positioning yourself well for solid returns on your investment thanks to the power of location and connectivity. Looks like your commute got a lot more valuable.