Transit and Real Estate Rents

Document Type

Journal Article

Publication Date

2017

Subject Area

land use - planning, land use - impacts, mode - bus rapid transit, mode - tram/light rail, mode - subway/metro

Keywords

Transit proximity, real estate value, real estate rent, light rail transit (LRT), bus rapid transit (BRT), streetcar transit (SCT), commuter rail transit (CRT)

Abstract

Although the literature is mixed on the association between transit proximity and real estate values, it is scant in relation to transit proximity and real estate rents. With CoStar asking-rent data for real estate within 1-mi corridors of several light rail transit (LRT), bus rapid transit (BRT), streetcar transit (SCT), and commuter rail transit (CRT) systems, the association between transit corridor proximity and rents at 0.5 mi and between 0.5 and 1 mi of transit corridor centerlines is estimated. For the most part, SCT has the most robust outcomes. This result is notable because economic outcomes to SCT systems may be the least understood given their recent emergence. LRT systems also have significant, positive associations between rents and corridor location. In contrast, results for BRT are mixed, with no statistically significant association with office rent, a negative association with the retail first 0.5-mi distance band, but positive effects for rental apartments. Across all development types, proximity to CRT corridors either has insignificant associations or significant, negative ones. On the basis of transit type, implications are offered for land use planning along transit corridors.

Rights

Permission to publish the abstract has been given by Transportation Research Board, Washington, copyright remains with them.

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