Capturing the Demand for Housing Near Transit

At NAR’s 2004 national conference, part of the Legislative and Political Forum focused on public transportation and its relationship to housing demand and real estate investment. Increased real estate development around transit stations is occurring throughout the country, and this transit-oriented development (TOD) is seen by policy makers as a major way to get us closer to smart growth. But how deep is the market for residential real estate in higher-density, mixed-use areas served by transit?

Jennifer L. Dorn, the Administrator of the Federal Transit Administration, addressed this topic and distributed a report, “Hidden in Plain Sight: Capturing the Demand for Housing Near Transit.” Co-sponsored by the Federal Transit Administration and the Surdna and Fannie Mae Foundations, the report applies geographic analysis to demographic statistics to estimate the market demand for housing within one-half mile of fixed guideway (rail and bus rapid transit) stations between now and 2025.

The report estimates that, although just 6.1 million households currently reside within a half-mile of a transit station, by 2025 the demand will grow to 14.6 million households. The growth could be even higher, as the 14.6 million households will only represent one-quarter of the growth in households that will actually occur. The report also estimates the ten highest-growth metropolitan areas in demand for TOD housing.

Read more about Hidden in Plain Sight: Capturing the Demand for Housing Near Transit on the Reconnecting America Web site.

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