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Ride On: Renters Willing to Pay More for Metro Access

by Shilpi Paul

Ride On: Renters Willing to Pay More for Metro Access: Figure 1

Renters in DC are willing to pay almost 30 percent more for an apartment that is within walking distance of a Metro station than one that is not, The Washington Post reported via the CoStar Group earlier this week.

Costar analyzed rents in the area, trying to find out exactly how much more people were willing to shell out to be within walking distance of the Metro. The company compared the prices of two sets of apartments in the region; one group was within a half mile of a station, and the other was more than a half mile from a station.

From The Post:

Washingtonians have consistently paid more in rent to live within walking distance of a Metro stop, even throughout the recent downturn. In the District, apartments within walking distance of Metro command 28 percent more in rent than those farther from transit stations. In the Northern Virginia, Inner Beltway and Montgomery County submarkets, the premiums are even higher, both near 40 percent in the third quarter of 2011.

The study didn’t control for all the other factors that affect rent, like maintenance, safety, and proximity to action, but it seems like residents are willing to pay a premium to avoid the wild rages that sometimes accompany our high ranking traffic congestion.

This article originally published at http://dc.urbanturf.com/articles/blog/renters_willing_to_pay_more_for_metro_access/4839

2 Comments

  1. Mike said at 2:46 pm on Tuesday January 3, 2012:
    I did an "unscientific study" a few years ago on cost of homes that were within a half mile to a metro vs. those who weren't. Based on my sample from DC and Virginia, the house premium was about $100,000 for a 2+ bedroom for easy metro access.
  1. StringsAttached said at 9:20 pm on Tuesday January 3, 2012:
    Makes sense; I bet most of those willing to pay more don't have a car (or spend little on an older one) so they can afford to pay higher rent. If I didn't have cars I could easily afford about $1600 more a month when you take loans, gas, insurance, and maintenance into account.

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