Public transit initiatives around the country that include train and light rail station additions as well as line extensions are changing the real estate markets in which these efforts thrive — particularly the immediate surrounding local markets with close proximity to where these additions and extensions are being built. Home prices in these local markets tend to be on the rise, especially in big cities like Los Angeles, Phoenix, New York City and our beloved Charlotte, where the much anticipated Lynx Blue Line extension is in the works.
While more public transit tends to increase home values in the neighborhoods where such initiatives occur, these local communities also run the risk of undergoing a fast-paced gentrification that may ultimately impact long-time renters and could dissuade people who cannot afford the new, quite expensive properties. On the other hand, it leads to properties that may otherwise fall into disrepair to receive much needed renovation and in some cases, be replaced by newer attractive residences.
With Charlotte specifically, home prices have been rising very quickly — approximately 27% year-over-year, according to realtor.com data. Property values within a one-mile walk of light rail stations have increased approximately 3.37% “more than similar houses located at least a mile from the stations.” Charlotte’s 10 mile light rail system opened in 2007 and the extension, which will add another nine miles north from Uptown to the University of North Carolina campus, is slated to open in early 2018, and will also be adding 11 stations to the business district. The ultimate mass transit plan for the city is to build another 46 miles of commuter and light rail by 2030.
What are your thoughts on the evolution of neighborhoods in close proximity to new rail development?
For more details and information on what Charlotte’s booming public transit development means for the city and the local real estate market alike, be sure to read the full article at realtor.com.