Demand to Grow for Housing Near Transport?

A combination of personal preferences and economic factors -- such as the fact that transportation is the second-largest household expense after housing -- will drive a higher demand for housing near transportation zones in the future, according to an analyst with the Urban Land Institute.Addressing a National Housing Conference in Washington, ULI senior resident fellow Robert Dunphy said almost 50% of consumers in a recent survey stated a preference for shorter commutes, even if it translates into a smaller home, or a home on a smaller lot. And slightly more than 50% would rather live in a larger home, even if they have to commute for over 45 minutes each way. The study, "Hidden in Plain Sight: Capturing the Demand for Housing Near Transit" (funded by the Federal Transit Administration), also indicated that over the next 25 years there will likely be a significantly higher demand for housing near transportation zones located within a half-mile radius of transit centers. At least a quarter of all new households, or 14.6 million, could be looking for housing in these transit zones. The growing demand is expected not only in metropolitan areas like New York, Chicago, and San Francisco, but also in cities with growing public transportation systems such as Atlanta, Charlotte, N.C., and Sacramento, Calif., according to the study.