Residential properties in ‘transit sheds’ held their value better
Yet many transit sheds in poorer parts of cities and in auto-oriented suburbs underperformed their regions from 2006 to 2011. Neighborhoods served by transit are divided between those that are prospering and those that are not.
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A new research paper determined that residential properties near transit stations in five major cities across the US maintained their values significantly better during the housing downturn than properties outside of transit sheds. “Across the study regions, the ‘transit shed’ outperformed the region as a whole by 41.6 percent” from 2006 to 2011, according to The New Real Estate Mantra: Location Near Public Transportation.
Transit sheds were defined as areas within a half mile of fixed-guideway transit stations, including rail and bus rapid transit. The study of the Chicago, Minneapolis/St. Paul, Boston, San Francisco, and Phoenix areas was commissioned by the American Public Transit Association and the National Association of Realtors, prepared by the Center for Neighborhood Technology.
Although transit sheds as a whole did significantly better, the pattern across regions was surprisingly uneven. More transit sheds lost value than gained value in some regions. In Chicago, for example, more than 60 percent of the region’s 388 transit sheds underperformed the region as a whole. The transit sheds that did better than the region tended to have high densities and rise startling amounts. One station in Evanston, near Northwestern University, outperformed the Chicago region by 550 percent. In San Francisco, one