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HERE’S WHY YOU SHOULD CONSIDER MOVING NEAR PUBLIC TRANSPORTATION

Taking the train or bus may sound like a drag — especially if you own a car. But driving yourself to work and back can be an expensive and time-consuming grind. That’s likely a big reason why many people choose to live near convenient public transportation options. Doing so may even raise the value of your residence if you’re a homeowner.

A recent study by the National Association of Realtors (NAR) found that neighborhoods situated within a halfmile of public transit services had higher real estate values than communities farther away from rail and bus lines. After examining seven major metro areas between 2012 and 2016 — Los Angeles; Phoenix; Seattle; Boston; Hartford, Connecticut; Minneapolis-St. Paul; and Eugene, Oregon — the report showed that neighborhoods near public transportation in these cities had median sale prices 4 to 24 percent higher. Plus, the average yearly transportation cost savings earned by a typical household in these areas ranged between $2,500 and $4,400. Another surprise finding is that 1 in 4 homes within proximity to public transit doesn’t own an automobile.

“This study demonstrates that owners can accumulate higher equity gains in areas near public transit,” says Nadia Evangelou, senior economist and director of forecasting for Washington, D.C.based NAR. “Residents of transit-oriented neighborhoods have greater access to jobs via transit, own fewer cars, and live in dense, walkable areas — resulting in lower transportation costs.”

For example, in Minneapolis-St. Paul nearly 460,000 jobs are accessible via a 30-minute commute to residents in transitoriented areas compared to 145,000 jobs for residents in non-transit communities.

Interestingly, the report also found that areas served solely by bus rapid transit experienced higher price gains than no-transit regions, suggesting that a neighborhood doesn’t necessarily have to have both bus and commuter/ speedy rail service to accommodate residents and drive property values higher.

“Bus rapid transit itself is effective in spurring price increases,” Evangelou says.

Sean Holland, a senior broker with Luxury Living Chicago Realty in Chicago, says these findings reinforce what he’s been preaching all along: People prefer convenience and accessibility.

“Homeowners have flexibility when they live near public transit. Many times when you want to go out on a Friday or Saturday night for dinner or a movie, you don’t want the hassle of driving, and cabs can be expensive. Having a train nearby really helps with the budget,” says Holland.

Home price gains in these transit-oriented communities make sense, as well, because “these are typically areas in high demand, where more businesses, restaurants, and opportunities tend to abound,” notes Tarek El Moussa, co-host of HGTV’s “Flip or Flop” TV show.

William Walzer, partner at the Real Estate Practice Group at Davidoff Hutcher & Citron LLP, in New York City, can vouch for the home-appreciation power that public transportation provides.

“Mass transit access can dramatically impact value. Since the first section of the Second Avenue Subway opened in Manhattan in 2017, property values in my neighborhood of Yorkville have steadily increased — faster than the rate for New York City as a whole,” says Walzer.

As you’d probably expect, neighborhoods with high-frequency public transportation are in higher demand, which means that homes nearby are likely more expensive. But they can also represent a smart investment, based on home price gain trends.

“Living near transit services makes the most sense for anyone who needs easily accessible public transportation, especially daily work commutes which can help alleviate limited parking, driving costs, and wear and tear on a vehicle,” notes

El Moussa. “People who may not be good candidates include those who already have a car, prefer to drive themselves or carpool to destinations, as well as those who prefer quieter suburban areas.”

If convenient bus and rail service is important to you, Holland recommends buying a home within a half-mile of those services.

“If you go farther out than that, it can be harder to access these services when the weather is bad,” adds Holland.

Conversely, avoid choosing a location too close to the bus or train stop.

“You don’t want to open your front door and stare at or hear noisy public transportation right from the comforts of your own home,” El Moussa cautions.