Property located within a half mile of Minneapolis-St. Paul’s public transit systems is worth 4% more than similar properties not in close proximity to public transportation, according to a joint report released today by the National Association of REALTORS® (NAR) and the American Public Transportation Association (APTA). The report found these higher property values are also reflected in rental costs, which are 7% higher for residential properties located near transportation as compared to the entire 7-county metro area.
The report, which examined the impact of public transportation on real estate property in seven markets across the country between 2012 and 2016, was unveiled at APTA’s TRANSform conference in New York City. Minneapolis-St. Paul is featured in the report along with Eugene, OR; Hartford, CT; Los Angeles, CA; Boston, MA; Phoenix, AZ; and Seattle, WA.
The report also found a total of 458,791 jobs were accessible within a 30-minute commute of Minneapolis-St. Paul transit systems, which is more than three times the number of jobs within a comparable commute in non-transit areas. As a result, the typical household near transit systems spends $3,366 less per year on transportation costs when compared with households outside of transit areas.
“Public transit’s benefits go beyond moving people from point A to point B,” said APTA President and CEO Paul P. Skoutelas. “Public transportation is a valuable investment in our communities, our businesses, and our country. Public transportation gets people to jobs and educational opportunities and helps businesses attract employees and customers.”
Nationally, APTA and NAR’s study found that median sales prices of homes near public transportation were 4% to 24% more valuable than similar homes in the regions surveyed. In addition, one in three households near transit reported not owning a vehicle while all households near transit spent between $2,500 and $4,400 less annually on transportation.
“Access to public transportation is a hugely valuable community amenity that increases the functionality and attractiveness of neighborhoods, making nearby communities more desirable places to live, work and raise a family,” said NAR President John Smaby, a second generation REALTOR® from Edina and longtime Minneapolis Area REALTORS® member. “The results of our report, conducted over multiple years alongside the American Public Transportation Association, should reiterate to policymakers at all levels of government the importance of investing in modern, efficient infrastructure that facilitates growth and helps our nation keep pace in a rapidly evolving world.”
“For some time we’ve known that rich transit and transportation options are important for today’s homebuyers,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “While it is reassuring, it’s not surprising that properties located in transit-friendly locations tend to outperform other areas.”
This study compared the performance of residential and commercial property sales near fixed-guideway stations with areas without public transit access between 2012 and 2016 in the seven regions served by light rail, commuter rail and/or bus rapid transit. The regions were chosen intentionally to represent small, medium and large regions.
For more information, visit www.mplsrealtor.com/apta-nar_realestatereport_09-30-19.