Property values plummeted during the recent recession, but homes near mass transit lines didn’t take as much of a hit.
That’s according to a study that came out Thursday from the National Association of Realtors and American Public Transportation Association (APTA).
On average, properties located within one-half mile of public transportation lines with high-frequency service performed 42 percent better than those that are farther away. In Minneapolis-St. Paul, the figure was 48 percent.
The study, “The New Real Estate Mantra: Location Near Public Transportation,” looked at property values in five U.S. cities, including Minneapolis-St. Paul. The results showed that properties near bus, rail and other forms of mass transit showed significantly stronger resiliency.
In Boston, residential properties near transit outperformed other properties in the region by 129 percent. In San Francisco and Phoenix, the figure was 37 percent, while similar home values in Chicago were 30 percent higher, the study said.
“The study shows that consumers are choosing neighborhoods with high-frequency public transportation because it provides access to up to five times as many jobs per square mile compared to other areas in a given region,” said Michael Melaniphy, APTA president and CEO.
In the Twin Cities, those living near public transportation lines had access to three times as many jobs, the study said.
Other amenities helping to boost values of properties near mass transit include lower transportation costs, walkable areas and robust transportation choices, he said.
High-frequency transportation was defined as subways, commuter rail, light rail and bus rapid transit. A new bus rapid-transit line will open in May or June along Cedar Avenue in the south metro area.
“Higher home values reflect greater market demand for areas near public transportation,” said Lawrence Yun, chief economist for the National Association of Realtors. “Transportation plays an important role in real estate and housing decisions, and the data suggest that residential real estate near public transit will remain attractive to buyers going forward.”