If you live close to a transit station, chances are you’ve weathered the recession better than your friends who don’t.
Your transportation costs are probably lower, since you can take transit instead of driving. Transit-served areas are usually more walkable and bikeable too, multiplying your options. And while home values plummeted during a recession that was triggered by a massive housing bubble, your home probably held its value relatively well – if you live near transit.
The National Association of Realtors and the American Public Transportation Association commissioned the Center for Neighborhood Technology to study the impact of transit access on home values during the recession. For the report, “The New Real Estate Mantra: Location Near Public Transportation” [PDF], CNT looked at five metro regions — Boston, Chicago, Minneapolis-St. Paul, Phoenix, and San Francisco.
While nearly everyone in hard-hit cities experienced some setback from tanking housing prices, transit-served areas were largely insulated from the worst of it, CNT found:
Across the study regions, the transit shed outperformed the region as a whole by 41.6 percent. In all of the regions the drop in average residential sales prices within the transit shed was smaller than in the region as a whole or the non-transit area. Boston station areas outperformed the region the most (129 percent), followed by Minneapolis-St. Paul (48 percent), San Francisco and Phoenix (37 percent), and Chicago (30 percent).
This is consistent with a study released last year by the Center for Housing Policy showing that access to rail transit created a “transit premium” for nearby home values of between six and 50 percent. That study, like CNT’s, looked at Minneapolis and Chicago, as well as Portland. The Center for Transit Oriented Development has also looked at this phenomenon and found transit premiums as high as 150 percent.