Being located near light-rail-transit could positively effect the value of your home, according to a new study from the University of Calgary.
New research, obtained by CREB Now and completed by Laura Dick, an Economics master’s degree student, has found that homes in Calgary located near newly built LRT stations saw a modestly positive boost in their value.
Dick told CREB Now, “Properties within zero to 500 metres of a station saw, on average, an increase in sales price of about 1.5 per cent compared to properties that are 2,000 metres or more away from a station.”
Results of the study are based on the LRT line expansions between October 2001 and August 2014. Dick examined 17 stations to see if there was any impact on housing prices located near these stations.
Dick’s results found that homes located near a newly developed station did add a positive boost to the value, and homes that are closer to the lines experience greater increases when compared to homes that are more than two kilometres away.
Housing that experienced the greatest effect of pricing were apartment-style homes, which aligns with previous research findings. Apartments that are roughly 500 metres away from the station were found to have a 3 per cent increase, as compared to similar style homes located two kilometres away.
Increases were experienced for semi-detached and detached homes as well, but the impact was modest.
Another finding saw that before LRT stations are built, because of the construction, home values tended to have a negative impact. As a result, it’s a possible investment opportunity for spectators seeking to buy prior to a station’s completion. In her study, Dick recommended city council to put measures in place to ensure that there are no large-scale purchases by single investors as real estate speculation could drive the market prices up and have a negative effect on lower-income buyers.
Although this research is preliminary it is significant as this is some of the first research on the subject based on Calgary housing specifically. Further research will need to be performed before any making investment decisions.