That’s according to a study commissioned by the American Public Transportation Association. The study argues that people are willing to pay more for housing located near public transit:
Moving beyond the traditional arguments that good schools and neighborhood amenities impact hous- ing prices, emerging research has indicated that urban form and transportation options have played a key role in the ability of residential properties to maintain their value since the onset of the recession.
Studies have shown that consumers are willing to pay more for housing located in areas that exemplify new urbanist principles or are “traditional neighborhood developments.” These neighborhoods are walkable, higher density, and have a mix of uses as well as access to jobs and amenities such as transit.
I’m an example of this.
As I mentioned earlier this week, I just moved to Salt Lake to be closer to my job. I chose the location of my new home based on proximity to my office, but equally important was proximity to Frontrunner. We pay considerably more per square foot for housing in Salt Lake than we did in Provo and we’re willing to do that because it’s located three blocks from the Frontrunner station and one block from a TRAX stop.
The study goes on to mention that housing near transit was more resilient during the recession. (I haven’t finished reading the study yet but if I didn’t blog it now, I’d never get around to it. I’ll finish it Friday after work.)
On the other end of the spectrum, Grist reported earlier this year that there are 40 million McMansions that no one wants because they’re not located in walkable, transit-oriented neighborhoods:
Only 43 percent of Americans prefer big suburban homes, says Chris Nelson, head of the Metropolitan Research Center at the University of Utah. That mean demand for “large-lot” homes is currently 40 million short of the available stock — and not only that, but the U.S. is short 10 million attached homes and 30 million small homes, which are what people really want.
Taken together, then, it’s pretty clear what kinds of housing will retain and increase in value: transit oriented ones. That should be helpful for people with a home purchase somewhere in their future; they just need to check potential sites’ proximity to public transit.
For those already in a home, being along the Wasatch Front, and particularly in Provo, happens to be a good place because we have an expanding transit system and a growing population. However, it’s important to keep in mind that supporting transit — as well as transit-promoting development like density, mixed uses, low or no parking, etc. — is also a reliable way to improve home values.