New Study Supports New Jersey’s New Initiative to Develop Areas Around its Public Transit Stations
A new study supports New Jersey’s new initiative to develop areas around its public transit stations. It found that neighborhoods located within a half-mile of public transit service locations outperformed areas farther from public transit based on a number of factors, such as property sales volume and price and rents.
The report, published by the American Public Transportation Association and the National Association of Realtors®, examined seven metropolitan regions – Boston, MA; Eugene, OR; Hartford, CT; Los Angeles, CA; Minneapolis-St. Paul, MN; Phoenix, AZ; and Seattle, WA — that provide access to heavy rail, light rail, commuter rail and bus rapid transit. It found that residential and commercial property sales near transit stations significantly outperformed areas without public transit access between 2012 and 2016 in all six regions.
“Public transit’s benefits go beyond moving people from point A to point B,” said APTA President and CEO Paul P. Skoutelas. “Public transportation is a valuable investment in our communities, our businesses, and our country. Public transportation gets people to jobs and educational opportunities and helps businesses attract employees and customers.”
Relationship between Real Estate Value and Public Transportation
The APTA/NAR study evaluated the seven metropolitan areas for residential and commercial sales performance, rent, neighborhood characteristics, local government interventions and housing affordability. Below are several key findings:
Between 2012 and 2016, median sales price increases near stations were 4 to 24 percentage points higher for residential properties than in areas farther from public transit. More than 43,500 occupied-units were added near transit in this time period across the seven regions.
Commercial property values also experienced gains in the studied cities. While data availability limited the office property analysis to five regions, four of them saw median sales price per square foot increase between 5 and 42 percentage points more in transit-proximate areas when compared with areas farther from public transit.
An increase in residential rents within transit sheds has encouraged developers. Increases in rents were between 2 and 14 percentage points higher in the public transit station area than in neighborhoods located farther away from transit.
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. In the seven regions, one in four households in transit areas does not own a vehicle. On average, a household spends between $2,500 and $4,400 less per year on transportation.
Key Takeaway for New Jersey Developers
The study confirms that, when choosing where to live, Americans increasingly value proximity to public transportation, along with the ability to conveniently access retail shops, restaurants, and other commercial amenities. At the same time, businesses are recognizing that locating near public transit can greatly assist in attracting quality employees and customers. These trends are all good news for transit-oriented developments.
In New Jersey, the Murphy Administration’s new initiative to spur redevelopment around transit stations is also welcome news. To capitalize on the opportunities, we encourage developers to partner with an experienced attorney who can walk you through the process.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Don Pepe, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
This article is a part of a series covering New Jersey’s new initiative to redevelop areas near public transit centers. Additional installments from the series are listed below:
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
