Buying on Transit Corridors for Future Home Value

Buying on Transit Corridors for Future Home Value Buying on Transit Corridors for Future Home Value

Most urban centres are expanding their public transit in order to combat traffic congestion, achieve environmental targets, and facilitate mobility of residents to live, work, and play in increasingly dense cities. One consequence of expanding transit networks is how new transit affects property values - what urban planners call land value uplift. And for savvy home buyers, you can take advantage of that knowledge when you buy to reap the benefits of land value uplift when you sell.

A complete-street design with many apartment buildings in the background and a 4-car LRT in the foreground.

What is Land Value Uplift?

Land value uplift is what researchers call an increase in property value as a consequence of an intervention such as a change in zoning, adding parks and greenspace or infrastructure investment like transit, including new lines, new stops, or new connections. Research shows that land values on transit corridors generally rise as soon as confirmation of the investment occurs, and then usually sustain a drop in value during construction, and then another increase upon completion of the project.

There are three aspects to the value-increase of transit investment: 

  • the monetization of improved accessibility – this means that residents spending less of their time and money on transportation can afford to spend more of their money on housing 
  • the value created by rezoning to highest and best use – this relates to land value and what use of a particular lot will increase its value most 
  • the value created by increasing the allowable density – the higher the density from vacant land to farmland, to single-family homes and to high-rise residential (and all stops in between), the higher the land value 

If you’re thinking strategically for your next purchase, you can read more about it here. If you're wondering how much it affects property values, read on.

Long-exposure image of a street-car passing buildings at night.

How much does local transit increase real estate values?

An American analysis showed that home values increased 4-24%, while a Canadian analysis showed land values can increase up to 54% as a consequence of proximity to public transit. There’s a kind of donut effect that happens to the land values around transit stations; residential property values increase within walking distance of transit, except for right on the corridor, where the commercial and multi-family properties are the ones to benefit from the land value uplift.

Where are Canada’s future transit corridors?

Most of us who buy homes are thinking about type of home, location, school areas, or proximity to work. Meanwhile, governments are committed to transit-oriented communities, so you may want to put your investor hat on and review the current and future transit situation in your preferred areas. As a financial investment, you could be looking at increased equity and a much higher resale value by buying strategically. Here are a few strategic options:

City bus on a street full of pedestrians flanked by buildings.

Toronto / GTA

Toronto transit options have exploded over the last 20 years and are set to continue exploding with new subway lines, new LRTs, whole neighbourhoods built around transit hubs, and even a whole new island with a designed-from-scratch, climate-positive community. It’s so eco-friendly, they halted construction when a flock of endangered migrating birds landed there for a season. Toronto is big, dense, and getting denser. If you’re looking for professional support for what might be your biggest investment, call FairSquare Group Realty where sellers save thousands in commission and buyers get $2,000 cash back*.

Hamilton and the Greater Golden Horseshoe

Transit expansions in Hamilton and the Greater Golden Horseshoe will improve the lives of commuters – and investors – with the Hamilton LRT from McMaster University to Eastgate Mall, “all-day-GO" from Hamilton’s West Harbour station to Toronto, and extended GO lines to Niagara Falls with stops enroute. Check out the transit plans, then check out the listings, then call FairSquare Group Realty where sellers save thousands in commission and buyers get $2,000 cash back*.

Ottawa

In Ottawa you can stay up to date on the O-Train network at OC Transpo, or get a jump on the crowd by visiting the Transportation Masterplan Update before deciding where to invest. If you can pick a neighbourhood that suits your goals, that is on a transit corridor, and also has a park, you’ll have a trifecta of land value uplift opportunities. If you want help deep diving into your home purchase, call FairSquare Group Realty where sellers save thousands in commission and buyers get $2,000 cash back*. If you want to browse Ottawa listings first, you can do that here.

Winnipeg

Winnipeg’s public transit infrastructure will see an investment of almost half a million dollars from federal ($183.7M), provincial ($153M), and municipal ($122M) governments. At Winnipeg Transit, depending on your own planning horizon, you can check out the Winnipeg Transit Masterplan, the short-term network planning or the long-term network planning as well as the route map of the 2045 Rapid Transit Network. And while you’re at it, check out house prices in Winnipegcompared to other cities, it has incredible prices! Contact FairSquare Group Realty where sellers save thousands in commission and buyers get $2,000 cash back*. 

Calgary

Calgary’s ambitious Green Line LRT project has $4.9B in investments. Calgary’s not just ambitious about transit; the people of Calgary have created a 100-Year Vision to guide the city’s growth and development. Check out the vision, check out the transit plan, and then check out homes for sale in Calgary to be part of its growth and success. Ready to buy? Contact FairSquare Group Realty where sellers save thousands in commission and buyers get $2,000 cash back*. 

Edmonton

Edmonton is looking at over $394M in transit investments to expand into the south-west of the city. It is one of the most affordable places to buy a home in Canada, and if you plan to buy strategically in proximity to a transit line, you may reap future rewards for your effort. Check out the transportation plans, then check out the real estate listings, then call FairSquare Group Realty, where sellers save thousands in commission and buyers get $2,000 cash back*. 

FairSquare Group Realty supports Canadians by providing real estate experiences with incredible rewards: sellers save thousands in commission and buyers receive $2.000 cash back* when they purchase a home with one of our REALTORS®. Call 1-855-999-9740 to learn more.

*Cash back – How the Home Buying Service cash back works: FairSquare Group Realty will share with the buyer the commission it receives from the seller’s agent up to a maximum of $2,000 in cash back. No cash back if the commission received is lower than $5,000. Where available.

On December 1, 2021, Purplebricks rebranded to FairSquare Group Realty. Blog articles published before this date were created under the Purplebricks brand but remain the property of FairSquare Group Realty.

In January 2019, ComFree Commonsense Network Brokerage rebranded to Purplebricks.