Smart Growth Makes Money:
Transit Oriented Development
Smart Growth Adds Value
to Real Estate Around Transit Stations
• [Picture of TOD]
Portland Streetcar & Mixed-use TOD
Ballston Metro Station in Arlington, VA
1
Images courtesy of EPA Smart Growth
Smart Growth Adds Value
to Real Estate Around Transit Stations
A summary of the findings on transit’s impacts on land values:
2
Denver, CO:
Home Values Increase near Transit
3
Smart Growth Adds Value
in Rail Station Areas
Price premiums within ½ mile of rail transit stations
4
Smart Growth Adds Value
to Commercial Property near Transit
• Santa Clara County, CA: Commercial land value within
¼ mile of commuter rail stations increased 120%; for
light rail, values increased 23%.
• Dallas: Office building values increased within ¼ mile
of DART increased 24.7% in Value.
• Washington D.C.: Commercial property value increased
$2.30/sq.ft. with each 1,000 ft. reduction in distance to
a rail station.
• San Diego: Commercial properties near Coastal
Commuter Rail Stations command a 91% price
premiums. Premiums for condominiums and single
family homes are 46% and 17%, respectively.
5
Smart Growth Adds Value
to Commercial Property throughout
the Region
• Properties near transit in the suburbs were
found to have a 12.7% higher net income,
16.2% higher market values, 0.3% lower cap
rates, 1.1% higher annual appreciation and
0.9% higher annual total returns.
• Properties near transit in Commercial Business
Districts had 4.5% higher net incomes, 10.4%
higher market values, and 0.2% lower cap
rates.
6
Case Study: Streetcars
Private Returns on Public Investment
Start of
Service
Initial
Track
Miles
Initial
Initial Development Return on
System
System Investment* Investment
Cost Per
Cost*
Track Mile*
2000
2.0
3.1
6.2
150
2319%
Little Rock 2004
2.5
7.84
19.6
200
920%
Tampa
2003
2.4
20.13
48.3
1000
1970%
Portland
2001
2.4
20.13
48.3
1046
1795%
Portland
Ext.
2005
1.2
14.83
17.8
1353
7501%
Kenosha
*in millions of dollars
Source: “Street Smart: Streetcars and Cities in the Twenty-First Century,” The American Public Transportation Association and the
Community Streetcar Coalition (2009).
7
Case Study: Streetcar
All Types of Properties Gain Value
8
Smart Growth Adds Value
Transit in Rural Areas
•
•
The estimated annual impact of rural public
transportation on the national economy as
of 1998 was over $1.2 billion.
Rural counties with public transportation
service were found to have 11 percent
greater average growth of net earnings
compared with counties without it.
9