How Public Transportation and Parking Availability Affect Your Home’s Value

The house itself is only one of the factors that go into the decision to buy. Ask any real estate

agent, they will tell you that location is one of the most important considerations when choosing

a house. In the modern housing market, location is not simply about being in a good

neighborhood. Buyers want other things as well, such as access to the subway or to bus and rail

lines as well as the ability to park their vehicles.

The Importance of Parking in City and Suburban Neighborhoods

Homebuyers who own cars and prefer to drive rather than to take public transportation will be

interested in parking. They may need parking for multiple vehicles in the household as well as

for their guests. Homes with space for parking can be hard to find in the city. In communities

where parking spaces are especially scarce, the availability of a garage or driveway can be a

major selling point. If a home has adequate off-street parking, this can be factored into the selling

price.

In suburban neighborhoods, most buyers will expect off street parking. If a suburban home only

has parking on the street, this will often be seen as a flaw and may result in a discounted selling

price. The reason for this is that on street parking is seen is considered an aesthetic drawback for

a neighborhood and lowers home values throughout. On street parking also makes cars

vulnerable to parking tickets and vandalism, which can cause the cost of not having a garage or

driveway to escalate quickly. Yet another downside is the fact that parking on the street may also

cause car insurance rates to increase. On the other hand, a home that does not have a garage or

driveway will have more room to expand and thus may offer more square footage or the potential

for an addition; however, this may not be enough to offset the absence of off street parking.

The Importance of Public Transportation

A study commissioned by the National Association of Realtors and the American Public

Transportation Association found that homes located in a half a mile of public transportation

performed considerably better than homes further away. Properties within what is called the

“public transport shed” performed 41 percent better than those outside the area. The reason is

that buyers who use public transportation typically do not want to walk several blocks to get to a

bus stop or train station.

Smart homebuyers choose homes that suit their lifestyle and more people are choosing walkable

neighborhoods and shorter commutes. This is especially the case for homebuyers in congested

urban neighborhoods.

Roman Temkin is a real estate developer from NYC.