How Public Transportation Effects the Value of your Chicagoland Home
In Chicagoland, areas once considered "rural" when my wife and I were growing up, are now thought of as suburbs of the city of Chicago. Roads that used to see limited traffic are now considered main arteries.
Because of that fact, and the accompanying population
growth that comes with this type of expansion, many new home buyers looking for homes in our area have changed the criteria in which they evaluate their future home choice.
Proximity to work ... travel time ... ease of travel ... gas prices ... all have contributed to the growing importance and focus on public transit in our region. The old mantra of "location, location, location" has never been truer than it currently is.
What does this mean to those selling their homes in the Chicagoland area?
A recent study released by the National Association of Realtors (NAR) in tandem with the American Public Transportation Association (APTA) indicates it means very good things for Sellers. It is stated that: "Data in the study reveals that during the last recession, residential property values performed 42% better on average if they were located near public transportation with high-frequency service".
The study, which evaluated 5 regions (Phoenix, Minneapolis-St. Paul, San Francisco, Boston, Chicago) where high-frequency services were predominant ... high-frequency being defined as light rail, bus rapid transit, and subway modes of transportation.
In the Chicago and Chicagoland region, the public transit areas performed 30% better than homes in other areas in the area. Homes near CTA stations (Chicago Transit Authority) did especially well, with homes in proximity to stations seeing sales prices an average of 47.3% higher. The study also indicated that approximately $300 was saved in transportation costs each month, when utilizing a public transit system.
Add all these statistics up and you quickly realize that
many potential Home Buyers in the Chicagoland area are hoping to buy near public transit ... and will be willing to pay more for those homes to accomplish that. Again, good news for those hoping to sell a home in a locale offering this beneficial feature both now and in the future.
It should be pointed out, that although a close proximity to public transit was not a complete panacea for the recession's sliding housing values, it did offer some respite ... something current Home Buyers should consider when considering location, whether they utilize public transit themselves or not.
For those considering a new home purchase in the Chicagoland area, below are some helpful and handy links to some of the public transit in our area. Check them out to see if the areas you are considering for purchase are nearby:
For: Chicago - Southland Travelers
Call 312-836-7000 for current route, schedule & fare info.
Customers with hearing loss: 312-836-4949 TTY
Amtrak - Union Station
How Public Transportation Effects the Value of your Chicagoland Home ... It must also be noted that this study showed that properties located in transit-oriented areas outperformed other properties, no matter the property type. Click HERE to view a Public Transit Chicago Infographic. So whether you are considering the purchase of a single-family residence, condominium, townhome, or something else ... the benefit is still to be found.
* Hoping to Buy a Home or Refinance in Will or DuPage County, or elsewhere in the Chicagoland area? Contact me today! I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
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Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.
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