Cleveland Real Estate News

This article from NPR highlights some stats about markets where transit exists compared to areas of the same state where it does not. Kathleen Schalch writes about a pattern developing: neighborhoods that are as she says relatively unscathed by falling prices (or at least ‘scathed’ less if that’s a word).

The article talks about a few trends analysts are seeing nationwide: a standstill in expanding into the suburbs. Empty nesters and single people are making up a larger portion of the home buyer market.  Standard & Poor’s publishes the Case Schiller Home Price Indices and a gentleman named David Shiff who helps produce these results commented in this article.

“….

Stiff says home buyers’ attitudes have changed. The old rule was, “Drive ’til you qualify” — meaning they should go out from the city until they could get what they wanted at a price they could afford.

“….Stiff says buyers are now asking different questions: ‘What is the cost of gasoline? What is the cost of my time?’

Recent studies suggest that buyers underestimated the costs of their long commutes. Those expenses can add up to more than the buyers saved on the home. Developers also miscalculated, lured by cheap land and rising home prices. They overreached, ‘partly because the bubble collapsed, but partly because these developments were just bad ideas to begin with,’Stiff said.”

The studies covered cities with good transit systems (otherwise the results wouldn’t have made sense). The results: transit or TOD areas were holding their home values better than areas without viable transit systems. The areas studied were Maryland (Baltimore) DC, LA, San Fransisco, NYC, San Diego, Miami and Boston.

Two thoughts. Yes, transit improvements could help all of us keep value in our homes and the trend really seems to be to move closer to the city or in the city. Secondly, many people are not looking to move. It’s expensive, they like their homes and their communities even though they are in the suburbs, but, they have seen the hardship commuting can do to their lives.  Politicians call it quality of life issues. For these people, The Ohio Hub and improved Amtrak service would be a true life benefit.

Thanks to Andrew Bremer of All Aboard Ohio for sending me to NPR today. And here is another study from the NPR archives discussing commuting times for those of us in the United States. Apparently 25 minutes is the average commute. Peace Out – 3C