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Light Rail for Cheviot is Cheviot Hills Homeowners advocating use of the existing “Exposition Right of Way” south of Northvale Road at the edge of our neighborhood

8. WHAT IS THE EFFECT OF LIGHT RAIL ON PROPERTY VALUES?

Every rail system is unique and every neighborhood is unique. Studies from one area may not apply to another. However, that does not stop comparisons and studies. Here are some:

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. Cited by American Public Transportation Association.

Buffalo

Impact of Proximity to Light Rail Rapid Transit on Station-area Property Values in Buffalo, New York. Daniel Baldwin Hess and Tangerine Maria Almeida, 2007.

Peer reviewed study of residential property values suggested that homes located within one-quarter of a mile radius of a light rail station can earn premiums of 2-5 percent of median home value. Proximity effects were positive in high-income station areas and negative in low-income station areas.

Source: Urban Studies, Volume 44, Issue 5 & 6 May 2007, pages 1041–1068.

Chicago

whether located in lower- or higher-income neighborhoods, proximity to CTA and Metra stations positively affects the value of single-family houses. All other factors equal, home prices decline as distance from a station increases.

Source: The effect of CTA and Metra stations on residential property values. A report to the Regional Transporation Authority. (June 1997, Gruen + Associates, San Francisco, CA). Cited by American Public Transportation Association.

Dallas

Values of properties adjoining DART light rail stations grew 25 percent more than similar properties not served by the rail system. Proximity to DART light rail stations appears to be a plus for most classes of real estate, especially Class A and C office buildings and strip retail. Average occupancies for Class A buildings near rail increased from 80 percent in 1994 to 88.5 percent in 1998, while rents increased from an average $15.60/sf to $23. Strip retailers near the stations registered a 49.5 percent gain in occupancy and a 64.8 percent improvement in rental rates.

Source: Weinstein & Clower, The Initial Economic Impacts of the DART LRT System. (July 1999, Center for Economic Development and Research, University of North Texas, PO Box 310469, Denton, TX 76203).

Portland

light rail has both a positive effect (accessibility effect) and a negative effect (nuisance effect) on single-family home values. The positive effect dominates the negative effect, which implies a declining price gradient as one moves away from LRT stations for several hundred meters.

Source: Chen, Rufolo, Dueker, Measuring the Impact of Light Rail Systems on Single Family Home Values: A Hedonic Approach with GIS Application (July, 1997 Portland State University, College of Urban and Public Affairs, Center for Urban Studies).

San Francisco

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.

Regional impact study commissioned by Bay Area Rapid Transit District (BART) July 1999 (The Sedway Group, San Francisco, CA). Cited by American Public Transportation Association.

Summaries

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: Diaz, Impacts of Rail Transit on Property Values (May 1999, APTA 1999 Rapid Transit Conference Proceedings Paper).

Access to transit carries with it an average price premium of around six to seven percent for single family homes (Allen & Mudge 1974; Bajic 1983; Allen et al. 1986; Voith 1991; Al-Mosaind 1994).

Source: Vessali, Land Use Impacts of Rapid Transit, A Review of the Empirical Literature, Berkeley Planning Journal 11 (1996): 71-105, Summary of Empirical Findings. http://www-dcrp.ced.berkeley.edu/BPJ/PDF/11-VESSALI.PDF

Property value premiums due to increases in accessibility range between 3% and 40%.

Source: Diaz, Impacts of Rail Transit on Property Values (Booz•Allen & Hamilton Inc., Mclean, VA).

Links

Metro Gold Line Foothill Extension Summary of Light Rail Transit Affects on Property Values.

Twelve Anti-transit Myths: A Conservative Critique

Transit Resource Guide, Rail Transit and Property Values (collection of reports and studies offering evidence that light rail, heavy rail, and commuter rail can have a positive impact on the values of residential and commercial properties.)