SEPTA Study Suggests Proximity to Transportation Increases Home Values

A study conducted by Econsult Solutions Inc. shows  access to regional Rail boosts property values across Bucks,  Chester, Delaware, and Montgomery Counties,  according to a information published Tuesday.

SEPTA Public Information Manager, Andrew Busch said about the report, “that access to SEPTA Regional Rail provides an average property value premium of $7,900 for single-family homes across the four counties.”

Using a commonly used economic research model called hedonic regression – where a characteristic of a perceived good or service is broken into elements and given values- the study  found that housing prices in the area’s studied could take a dive if SEPTA is forced to cut transportation lines if funding levels continue to dwindle.

The study commissioned by the transportation agency, and conducted  by a consulting firm that specializes in areas such as  transportation, public infrastructure and real estate a press release says shows that overall proximity to SEPTA rail stations increases home values.

The inquiry examined single-family house transactions from 2005 to 2012 in Bucks, Chester, Delaware, and Montgomery Counties and the property value premiums  resulting  from being located near a SEPTA rail station.

Property values increased, the study says, for the 754,000 single family homes studied in the four counties  by $7,900.00  on average and for homes  in communities with higher levels of Regional Rail service and  parking capacity, the property value premium averages between $31,000 and $37,000 per house, according to the study.

Fiscal year 2014, the press release says, represents the fourth year in a row capital funding has been reduced for SEPTA .

SEPTA Regional Rail ridership hit an all time high last year, however, “The massive investment necessary to preserve our transit system in this region requires a significant  state transportation bill, as is the case for most major public transit agencies nationwide,” said SEPTA  General Manager Joseph M. Casey. “After years of funding disparity, we are faced with an infrastructure  crisis that – if left unresolved – will force SEPTA to significantly shrink the transit system.”

The full report, “The Impacts of SEPTA Regional Rail Service on Suburban House Prices”, is available online at the Econsult Solutions website, www.econsultsolutions.com.