Public Transit Boosts Property Values, If Conditions are Right
Public transit can increase the development potential of real estate near high-capacity transit lines and stations, and thereby increase property values. This “transit premium” can range from as little as a few percent increase to over 150 percent. The amount depends largely on the local regulatory environment, regional connections, and national and regional economics. Achieving the potential for this increased value of property also generally requires building more complex, mixed-use projects at higher densities, which entails higher costs of development and higher risks. Developers will be more likely to take on those risks if other transit-oriented development projects in the city have already succeeded. Unbridled, subsidized development in suburban and rural areas around a transit city also prevents transit stations from enhancing property values.