Denver real estate likely to get a bump!
The new A Line commuter rail from downtown to Denver International Airport has had our community buzzing recently, and with good reason. The 23-mile, 37-minute trip has made local and international travel more convenient by providing easy and efficient access between downtown and DIA. The ride costs only $9 and trains run every 15 minutes. For both daily business travelers and occasional leisure travelers, the new transit option is transforming travel to and from Denver. The impacts of the new line, however, are anticipated to extend beyond making travel to the airport more convenient and reliable; the Denver real estate market will also likely feel the effects of the new high-speed commuter rail.
In a study commissioned by the American Public Transportation Association in partnership with the National Association of Realtors, research from other cities found that “proximity to high-capacity transit stops has been shown to increase property values, a phenomenon known as the ‘transit premium.’” Studies have shown that there is a growing interest in communities with nearby transit, and consumers are generally willing to pay more for housing in these areas. Research found that close transit commonly increases neighborhood accessibility and potential development, and it influences more stable and higher residential property values. Residents generally have better access to jobs and lower average transportation costs. Some areas have also experienced lower mortgage default rates and higher average residential sales prices.
While some research indicates that transit can negatively impact certain areas by creating noise, pollution or crime, this is dependent on many factors. Historically, transit has enhanced residential areas.
The A Line is being hailed as a game changer for Denver and our airport. According to RTD, many Denver neighborhoods and communities will likely be impacted, including downtown, River North (RiNo), Cole, Elyria-Swansea, Clayton, Montbello, Stapleton, Morris Heights, Gateway, Green Valley Ranch and North Park Hill. For neighborhoods like Cole and Whittier, the A Line is an important addition to the list of nearby amenities that attracts residents. In addition to being a few blocks from City Park and Uptown and close to RiNo and Brighton Boulevard, residents will now have rail access to Union Station and the airport which will likely increase the desirability of the areas.
The launch of rail transit to the airport is an important signal of the strength and growth of the Denver metro area as well as a good indicator of the ongoing strength of the local Denver real estate market. As we wait to see how the A Line impacts Denver’s residential real estate market, we’ll enjoy convenient $9 trips to the airport in the meantime!