The Effect of Transit Oriented Development Siteson Residential Home Pricing
The Effect of Transit Oriented Development Sites on Residential Home Pricing Bradley S. Randall School of Technology, BYU Master of Science For a number of years residential and commercial development has grown surrounding railways stations in many cities across the United States. One of the trends that has occurred in a number of cities relates to positive property value correlations between real estate values near transit stations and transit oriented development (TOD) sites as compared to their counterparts not located near a railway station or freeway access. Many cities have noted that homeowners are willing to pay more to be near a TOD site and being near a site can represent a statistically significant factor in determining where to purchase a property. In suburban markets with newer developments, the data was not as readily available. While the suburban area along the main population corridor of Northern Utah called The Wasatch Front has seen a lot of growth in TOD development, there really was not sufficient data on residential pricing to see if the same types of trends that held true in other areas of the United States held true along the Wasatch Front. This research analyzed multiple cities in multiple counties along the Wasatch Front that all featured development surrounding a TOD site. The purpose of the research was to determine how the price per square foot during a period of study in 2016 was higher for properties located near TOD sites compared to properties nearby freeway entrances or isolated from both. Three types of properties were analyzed in the study: Single family homes, townhouses and condominiums. Another purpose of this study was to determine which factors were the most statistically significant in the purchases made by homebuyers during the period of study. Multiple statistical models were tested in order to determine the most significant variables in the study and just over eight hundred properties were tested. The research indicated in developing rapid transit cities like Salt Lake City and suburban areas, the value of car free living and resident dense cities is still emerging. Statistical results indicated certain factors and trends that can be helpful not only for local planners and developers but also to further the body of research on the development of these transit oriented development sites in suburban areas around the United States.