Impact of railway stations on property value

 
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November 23, 2009

Train and subway stations play a significant role in both transit networks and the urban environment. While numerous studies have examined stations’ effect on property values, the results have been mixed: Some show a negative impact, others insignificant differences, and some indicate positive effects.

To understand the variation in results, a 2007 meta-analysis, “The Impact of Railway Stations on Residential and Commercial Property Value,” synthesized U.S. and international studies. The papers examined many different systems types, from bus rapid transit to heavy rail, and all types of property, including vacant lots, homes, businesses, and industrial sites.

Based on the available literature, the metastudy concluded:

  • Because of their larger service area, commuter rail stations have a greater impact on property values than light rail or subway stations.
  • Commercial properties within a quarter mile of a station sell or rent for 12.2% more than residential properties in the same distance range.
  • For every 250 meters closer to a railway station, the property value effect is 2.3% higher for residential properties than commercial properties.
  • When transit modes other than trains are available in an area, railway stations generally have a lower impact on property value.

Tags: congestion, metastudy, transit, employment, municipal, infrastructure

 

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Citation: Debrezion, Ghebreegziabiher; et al. "The Impact of Railway Stations on Residential and Commercial Property Value: A Meta-analysis". The Journal of Real Estate Finance and Economics , August, 2007, Volume 35, Issue 2, 161-180. DOI:10.1007/s11146-007-9032-z.