Last month, the National Institute for Transportation and Communities (NITC) published Impacts of Bus Rapid Transit (BRT) on Surrounding Residential Property Values. The report analyzes the impact that proximity to BRT, or bus-based transit systems, has on surrounding residential property values. While BRT refers to a broad range of bus systems, some common characteristics of BRT’s include dedicated busways, raised boarding platforms, traffic signal priority, and off-board fare collection.
NITC researchers conducted a case study on the Lane District EmX BRT service in Eugene, Oregon, with the hypothesis that “property values are higher closer to BRT stations, reflecting a premium for the access provided by the BRT service to various goods, services, employment, education, and recreation.” Based on the results of the study, NITC found that residential property values do increase with closer proximity to the EmX BRT, thus, supporting their hypothesis.
The researchers analyzed property value models during three different time periods – 2005, 2010, and 2016. The results indicated an increase in the average sales price of homes as the distance to a BRT station decreased, which grew between 2005 and 2010, and then again between 2010 and 2016. For every 100-meter decrease in distance from the BRT station, researchers found:
- An average sales price increase of $823 analyzing the 2005 model;
- An average sales price increase of $1,056 analyzing the 2010 model; and
- An average sales price increase of $1,128 analyzing the 2016 model.
The report notes that this increase over time suggests that not only is there a premium for living closer to a BRT system, but that this premium is growing.