Property Value & Public Transit: How Transportation Infrastructure Affects Home Prices
Are you in the market for a home? One of the most important considerations is commuting time and public transportation options. Long commutes are not only tiresome and time-consuming, but they can also have an impact on your wallet. Research has shown that homes located in cities with transit services and roads tend to cost more than those who lack good access to transit infrastructure. Would you rather pay less and commute longer or buy a more expensive home in a convenient location? Consider the following information to help you decide.
Do Commuting Costs Increase Homebuying Costs?
Some people will sacrifice their time for more affordable housing. While they may save money on the initial purchase, how much will they end up spending on their daily trip to work or school? The true cost of long commutes can add up quickly, whether you travel by car, bus, or train.
Many people have to budget each month for their commute, so having a shorter travelling distance can save both time and money. Of course, the budget may increase when there is more than one person in the household who has to commute each day. Expenses can include:
- Vehicle operation costs
- Price of parking
- Monthly public transportation tickets
Occasionally, it will be more cost-effective to spend more on commuting in favour of cheaper housing. Still, it's impossible to account for time lost to long commutes. Time spent driving to and from work or sitting on a commuter train can increase stress and work-related fatigue.
How Does Proximity to Public Transportation Increase Property Values?
Living near public transportation can be a highly attractive feature for potential home buyers, which in turn increases the value of the property. The ease and convenience of using public transport make it simple for people to get to their destinations quickly and comfortably. This also allows more time for leisure activities as travelling time is greatly reduced. As a result, living near public transportation can lead to higher property prices due to the high demand and has become a major factor when deciding on where to purchase a home.
It's hard to say exactly how much access to transit increases home values. However, location is one of the most important factors of high-value real estate. The definition of a "good" location varies from place to place. Broadly speaking, most people find that the best locations provide amenities or qualities that improve their everyday lives. Living in neighbourhoods with public transportation can be a huge perk to inner-city homebuyers, which will likely be reflected in the listing price when it's time to sell.
The Pros & Cons of Living Near Major Roads
Living in proximity to major roads can offer a number of conveniences, especially for those who need to travel regularly for work or leisure. The nearby roads facilitate transportation, which can mean fewer expenses related to gas consumption and lower travel times.
However, there are also drawbacks to living near major roads—the noise from the constant stream of traffic can be overwhelming, even if you live off the main without any direct contact to the traffic flow. Additionally, air pollution may become an issue without adequate regulation or protective measures in place. For those considering living near major roads, it is important to weigh both sides before making a decision.
Living Near Work & Play
Life isn't all about work. You should also buy a home that's close to things to do in your city.
Living close to shopping and entertainment can be a huge draw for potential homebuyers. Having access to the convenience of a grocery store, mall, or even a movie theatre nearby adds value and comfort to an otherwise stressful process. Being able to run errands conveniently helps free up time that could be spent with family in the evening hours, rather than feeling chained to your location by having to drive long distances or travel to far-away transit stops.
On the other hand, some people like separation between work and their personal life. They may like living in quieter neighbourhoods and welcome the break from the faster pace of the city. Often, they may use the commuting or travel time to wind down or finish up projects. Therefore, a longer commute poses little issue to them.
How Does Access to Transportation Affect Your Life?
While affordability is a major factor for first-time home buyers, it does appear that more people would rather have a smaller home close to work than have a larger property farther away. Some people may enjoy the shorter commutes and advantages of living in or near the city. For them, a lively urban environment can be an added attraction, even as they sacrifice living space and are physically closer to their neighbors. Convenient public transportation options and nearby roads or highways can provide an increased sense of independence.
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