Rail Stations Boost Home Value in Pennsylvania Suburbs
Rail stations are an excellent example of tax money being used to help the people that paid those taxes. These days, any Bucks Country Real Estate broker could tell you more and more home buyers are willing to pay whatever it takes to own a home near a station, and their reasons should sound familiar to all of us. Many of them aren’t even interested in looking at an area not within walking distance of a train. Proximity to stress-free transportation is the goal and who can blame them?
Brokers are used to dealing with people that want to be near all the best schools but that’s not such a driving factor anymore. Not everyone has school age children at home and are far more interested in amenities other than good schools. When your home is close to a rail station you can leave the car parked and avoid things like traffic jams, no parking spaces, or having to walk long distances after you step off the bus.
That kind of convenience is always going to boost property values. It used to be that being near freeway access was a good selling point, but not anymore. Many people have come to feel that roadways in the U.S. are such busy, dangerous places anytime one can avoid them entirely and take a train you’re that much better off.
Rail Station Impact on Philadelphia Home Value
In Philadelphia suburban home value is proven to increase the closer you live to a rail station. This is true across the U.S., so let’s look at San Francisco’s BART (Bay Area Rapid Transit) as an example. Long before BART was even fully operational housing costs began to rise in the surrounding area. This was decades ago and the trend hasn’t changed. As soon as a buyer hears the words “no rail station at a convenient distance,” most of them keep looking.
Commercial property also enjoys a rise in value near railway stations and make excellent investment opportunities. Such properties located within ¼ mile are typically over 10% more expensive than a private home. It’s quite a gap when the difference between a station and the average private residence is approximately 4.2%, and 16.4% for commercial properties. The longer the distance, the more private homes dominate. For every 250 meters closer a home is to a station, its price rises 2.3% above that of commercial properties.
What Does SEPTA Have to Say About Rail Stations and Their Connection to Housing Costs?
South Eastern Pennsylvania Transportation Authority (SEPTA) contracted Econsult Solutions for this analysis, “SEPTA Drives the Economy of Pennsylvania.” According to this report there is no doubt that rail stations add to Philadelphia home value, or any suburban home value just by being near them. Bucks County Real Estate agents consider themselves lucky to get listings in these areas because they are so coveted. After all, why drive when you can take the train?
The analysis covered ten years’ worth of real estate deals on single-family homes in Philadelphia’s surrounding counties. Closing prices of homes within 3 miles of a rail station were compared to houses that were farther away. It was proven that these stations were responsible for adding billions to property value and home owners have SEPTA to thank for it. Imagine being able to get where you’re going and:
- Zip right by stalled traffic.
- Enjoy the ride or work on the way.
- Never have to deal with riding an over-crowded bus.
- Smiling at a crowded parking lot because you rode the train.
- Arrive early instead of late because you got hung up in traffic.
- Never have to worry about traffic violations or parking tickets.
- Sleep in because not as much travel time is needed to get where you’re going.
These are the kind of practical reasons that make a rail station nearby look so attractive and why competition is so lively when it comes to buying in these areas. It can’t be anything but good that wherever new rail lines appear, new housing is sure to follow. With all the pluses of trading driving for riding, having several buyers at once all interested in the same piece of property is not unusual, but it can get complicated for anyone with no real estate experience.
This is where the services of a professional are necessary, and you can find them at homecatch.com. Not only do our Bucks County Real Estate Agents have information on every listing in a particular area, they have the skill and patience to match buyers with the perfect deal. Once that match is made, savvy agents handle the paperwork, all the buyer needs to do is sign it. Competition might be fierce but once you’ve moved in, the rewards are more than worth it.