How Does Public Transportation Affect Residential Valuation and Appraisal?
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Residential valuation and appraisal are typically tied to home amenities, comparable sales, school attendance zones and neighborhood character. In fact, on this blog, we've addressed the connection between home values and school quality - check out Real Estate Valuation and School Boundaries, as well as our Top 10 Most Affordable Neighborhoods with the Best Schools.
Location, Location, Location ... and Public Transportation
The study examined property values in five U.S. cities (Boston, Chicago, Minneapolis-St. Paul, Phoenix and San Francisco) from 2006 to 2011 to learn whether location near public transit helped properties retain their value during the recession. The findings were significant: In all five cities, the property values in areas with a well-developed "transit shed" outperformed properties in non-transit areas by 41.6%. The study concludes that sales prices for homes in proximity to transit were more stable during the recession. Although the scope of the study did not include the years since 2011 or home prices elsewhere in the U.S., we can reasonably conclude that in general, public transportation access is capable of having a positive effect on home values. Other studies echo this. The Center for Transit Oriented Development reviewed several studies on home values and public transportation. They determined that increases in values of homes near transit ranged from a few percentage points to over 150%.
Walkability also plays a role... Other research links "traditional neighborhood developments" to increased home values. These neighborhoods typically feature higher walkability - the ability to reach schools, restaurants, libraries and the like on foot.
Maponics Context Commuter Scores and Context Walkability
Banks and appraisers who want to ensure they're developing accurate appraisals can rely on Maponics Context™ Commuter Scores to determine the level of public transit access in a given area. Commuter Scores includes 3 scores: Bikeability, Drivability and Public Transportation. The Public Transportation score summarizes, when using public transit, the level of accessibility to Points of Interest (POIs) available within Maponics Neighborhood Boundaries, School Boundaries and ZIP Code Boundaries. To learn about the walkability of a location, appraisers can use Maponics Context Walkability™, a comprehensive and customizable dataset that delivers walkability ratings for Maponics Neighborhood Boundaries, School Boundaries, ZIP Code Boundaries and more. To find out more about Maponics Context Commuter Scores and Walkability today, contact us.