How does proximity to transit affect value?
Want bigger returns? Find out how being steps from transit can multiply resale value and rental income.
Why proximity to transit moves the market
Properties near transit attract more buyers and renters. Shorter commutes expand the buyer pool. Commuters, students, and young professionals prioritize access. That higher demand lifts prices and supports stronger rental rates. Transit-oriented development (TOD) creates dense, amenity-rich neighborhoods that hold value through market cycles.
Typical price and rent impacts
Research and market reports show consistent premiums for transit-adjacent properties. Premiums vary by city and transit type, but a practical range is 5–20% higher sale prices and 5–15% higher rents for units within a 5–10 minute walk (about 400–800 meters) of a major station. The closer the property to a hub or frequent service line, the larger the premium. These figures translate into faster sales, lower vacancy, and better long-term appreciation.
How to measure transit value for investment
- Walk distance: Use a 5–10 minute (400–800 m) radius as your primary filter. Values spike in that band.
- Transit frequency: High-frequency service (every 10–15 minutes) beats infrequent lines.
- Transit type: Subways and light rail typically add more value than buses.
- Walk Score & Transit Score: Include these metrics in your comparative analysis.
- Comps: Compare sale prices and rents for properties inside vs. outside the catchment area to quantify local premiums.
Risks and trade-offs to account for
Transit boosts demand but brings trade-offs. Noise, pedestrian congestion, and parking pressure can reduce appeal for some buyers. Crime perception near stations can suppress prices. New transit plans can lift values but also create construction disruption. Always balance premium estimates with these negatives and adjust renovations or pricing accordingly.
Actionable steps for investors and resellers
- Map the catchment: Run a 400–800 m buffer around stations and tag properties.
- Pull comps: Filter sold data by distance to transit and compare price per square foot.
- Project rent upside: Estimate rent premium, then calculate effect on cap rate and cash flow.
- Check future transit projects: Planned lines can be the fastest path to appreciation.
- Mitigate negatives: Use upgrades (soundproofing, secure entry, street-facing retail) to counter noise and safety concerns.
Quick case insight
A unit under a frequent transit line fills faster and rents higher than a similar unit 1 km away. The difference compounds: quicker turnover, higher rents, and stronger resale demand. For investors, that reduces vacancy risk and improves exit multiples.
Bottom line
Proximity to transit is a reliable value driver when analyzed correctly. Use distance, service frequency, and local comps to estimate premiums. Balance benefits with noise and safety factors. Do the math on rent upside and cap rates before you buy.
For a local evaluation and data-driven comparables, contact Tony Sousa — Local Realtor and investment specialist. Email: tony@sousasells.ca | Phone: 416-477-2620 | https://www.sousasells.ca
