The National Association of REALTORS® has partnered with the Urban Land Institute to sponsor research by the University of California (Berkeley) on the effect of proximity to rail transit on property values. So far, three places in California have been studied: Santa Clara County; San Diego; and Los Angeles. The studies look at the effect of being near all types of rail transit: light rail (trolley); heavy rail (“subway”); and commuter rail. The Santa Clara study considered only commercial property values; the San Diego and Los Angeles studies included residential and commercial properties. Future phases of research will study metropolitan areas outside of California.

Santa Clara County, California
The Sanda Clara County study found capitalization benefits of 23 percent for a typical commercial parcel near a light rail stop and more than 120 percent for commercial land in a business district and within a quarter-mile of a commuter rail station. The authors conclude that these findings lend support to transit-oriented development (TOD)initiatives, and that the benefits of TOD can best be realized through denser, mixed-use development and infill of sites fairly close to rail stations.

Download the Santa Clara County Rail Study (PDF: 500KB)

San Diego County, California
This found appreciable land-value premiums for different land uses in different rail-transit corridors in San Diego County. The most appreciable benefits were: 46 percent premiums for condominiums and 17 percent for single-family housing near Coaster commuter rail stations in the north county; 17 percent and 10 percent premiums, respectively, for multifamily housing near East Line and South Line trolley stations; and, for commercial properties, 91 percent premiums for parcels near downtown Coaster stations and 72 percent premiums for parcels near trolley stations in the Mission Valley.

Download the San Diego County Rail Study (PDF: 463KB)

Los Angeles County, California
Although some instances of land-value premiums were found in the Los Angeles County study, overall impacts were uneven and inconsistent. In the case of the Red Line, multifamily housing near subway stations accrued benefits; for other uses, nearby properties tended to sell for less. Stronger premiums were found for the Metrolink commuter rail system, with the exception of the Orange and Ventura corridors. Light-rail transit services conferred the largest benefits to multifamily housing and commercial uses. One possible explanation for the lack of clear and consistent premiums in Los Angeles may be that many rail station areas are in distressed settings and redevelopment districts.

Download the Los Angeles County Rail Study (PDF: 740KB)

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