Insight | October 02, 2019
Location, Location, Location一本道最新高清无码 are the three magic words when it comes to real estate. Everyone shops for the “right location” when buying a home, but determining the right location varies tremendously from buyer to buyer.
In metropolitan areas, where the cost of the commute is high, and time is of the essence, metro rail (light rail) provides an easy transport alternative. While proximity to a metro station can reduce commuting cost in terms of time and offer a level of convenience, it also comes with certain drawbacks—factors such as noise, crowded neighborhood streets and parking issues could become a nuisance. Depending on the buyer’s preference, proximity to a metro station could either increase or decrease the value of a house. This Insight analyzes whether DC Metro Area residents consider proximity to a Metro rail station to be an amenity or not, and how much value such proximity adds to or subtracts from the price of a house.1
Washington Metro rail (known as “Metro”) began operations in 1976 and serves the District of Columbia, as well as several surrounding jurisdictions in Virginia (Arlington and Fairfax counties, including the independent cities of Alexandria, Fairfax and Falls Church) and Maryland (Montgomery and Price George’s counties). Metro is the second-busiest rapid transit system by ridership in the United States. Several studies have analyzed the impact of nearby light rail stations on residential property prices, but only a handful of studies have focused on the DC Metro Area (see Appendix A.1).
Within this Insight, we find that proximity to a Metro station in the DC Metro Area increases the prices of nearby houses. Additionally, we find that the closer the house is to the station, the higher the price.2 In some cases, This means that, when putting up a house for sale, highlighting the details about the proximity to a Metro station in the house listing may make the listing much stronger in terms of price.3
The value added to house prices, however, does vary. For example, the premium is higher for homes less than $415,000 and lower for more expensive homes. This may be because residents of lower cost homes may rely more heavily on public transportation and, therefore, may place a higher premium on proximity to a Metro station.
一本道最新高清无码For many homebuyers in the congested DC Metro Area, cutting down on commuting time is of value. The sections that follow describe the questions we considered to tease out the effect of proximity to a Metro station on house prices.
There are several factors to consider when pricing a house. A house’s appeal is first and foremost influenced by its location, followed by its structural attributes, including the number of bedrooms, bathrooms, and lot size, as well as amenities such as neighborhood and schools. Between 2015 and 2017 (our study period), houses sold for $467,008 on average in the DC Metro Area. The average distance to the nearest Metro station was 10.4 miles. These houses, on average, had 2 bedrooms, 2 full baths, 1 half-bath, and a lot size of 0.4 acre. Of all the homes sold during our study period, approximately 13% were within a mile of a Metro station, including 1% within one-quarter mile, 3% within one-quarter mile to one-half mile, and 9% within one-half mile to one mile. The rest were located more than one mile from the nearest Metro station. Exhibit 1 shows how prices vary according to the distance to a Metro station. See Appendix A.2 for other attributes tested.
Hess, D. B., and T. A. Almeida. 2007. “Impact of Proximity to Light Rail Rapid Transit on Station-area Property Values in Buffalo, New York.” Urban Studies 44 (5-6): 1041–68.
Kim, K., and M. L. Lahr. 2014. “The Impact of Hudson-Bergen Light Rail on Residential Property Appreciation.” Papers in Regional Science 93 (1): S79–S97.
一本道最新高清无码Landis, John, Robert Cervero, Subhrajit Guhathukurta, David Loutzenheiser, and Ming Zhang. 1995. Rail Transit Investments, Real Estate Values, and Land Use Change: A Comparative Analysis of Five California Rail Transit Systems. Monograph 48, Institute of Urban and Regional Studies, University of California at Berkeley.
Lewis-Workman, Steven, and Daniel Brod. 1997. “Measuring the Neighborhood Benefits of Rail Transit Accessibility.” Transportation Research Record 1576 (1): 147–53.
一本道最新高清无码Pan, Q. 2012. “The Impacts of an Urban Light Rail System on Residential Property Values: A Case Study of the Houston Metro Rail Transit Line.” Transportation Planning and Technology 36 (2): 145–69.
1 The DC Metro Area includes the District of Columbia and parts of Virginia and Maryland, along with a small portion of West Virginia. It is also known as the Washington-Arlington-Alexandria, DC-VA-MD-WV Metro Area.
2 We include single-family residences and townhouses in our analysis. Distance to Metro station is the Euclidean distance from the centroid of the property to the nearest Metro station.
3 This result is in line with Lewis-Workman and Brod 1997 research in San Francisco and New York City. See Appendix A.1 for selected literature review.
一本道最新高清无码4 We use quantile regression that allows the effect of the explanatory variables to differ over house prices to determine whether the Metro premium was uniform across all house prices.
一本道最新高清无码PREPARED BY THE ECONOMIC & HOUSING RESEARCH GROUP
Sam Khater, Chief Economist
Len Kiefer, Deputy Chief Economist
Ajita Atreya, Senior Macroeconomic Housing Economist
Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's Economic & Housing Research group, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the Economic & Housing Research group attempts to provide reliable, useful information, it does not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution. Alteration of this document or its content is strictly prohibited. ©2020 by Freddie Mac.