Owning a home near a mass transit station, such as Washington, D.C.’s “Metro,” has its drawbacks and benefits, says a new study by Freddie Mac.
In terms of home prices, it’s mostly a benefit living near a Metro stop in the nation’s capitol — to the tune of thousands of dollars.
“Proximity to a Metro train station is an amenity that is valued by homebuyers in the DC Metro Area, and it is reflected in increased house prices,” said Sam Khater, Chief Economist at Freddie Mac. “Homebuyers typically pay almost $9,000 more to be within a mile of a Metro station, and the premium rises to $40,000 to be within a quarter of a mile.”
But the highest premium belongs to homes sold between $310,000 to $415,000 ($467,008 is the average home price in the DC Metro Area), Khater adds.
There are several factors that go into pricing a house. A house’s primary appeal is its location, followed by its structural attributes, including the number of bedrooms, bathrooms, and lot size, as well as amenities such as neighborhood and schools.
Between 2015 and 2017, houses sold for $467,008 on average in the DC Metro Area. The average distance to the nearest Metro station was 10.4 miles, Freddie Mac said.
“While proximity to a metro station can reduce commuting cost in terms of time and offer a level of convenience, it also comes with certain drawbacks— factors such as noise, crowded neighborhood streets and parking issues,” Freddie Mac stated.