Research Report Concludes That Select Property Owners Will Receive a 10 – 20% Increase in Their Property Values.
The Real Estate Investment Network (REIN™) a Division of Cutting Edge Research Inc. is pleased to release The Hamilton Transportation Effect, which details the impact of the upcoming transportation improvements on housing in the Hamilton area. The report’s research concludes that prices in select Hamilton neighborhoods will receive a 10% to 20% premium, over and above what the rest of the city’s market does in the coming years.
The announcement of proposed rapid transit lines in Hamilton lead the REIN team to undertake a research report on the impacted neighborhoods.
REIN’s detailed research has found that there are three “Tiers of Impact” that will occur in the Hamilton region:
First Tier: Neighbourhoods located near the on and off ramps to the Red Hill Valley Parkway. These include: McQuestern East and West, Barton, Nashdale, Kentley, Glenview East, Corman, Red Hill, King’s Forest and Albion Falls.
Second Tier: Includes areas that will also be positively impacted by the easier access and traffic flow created by the Highway 8 link to the Red Hill Valley Parkway. This will allow commuters from as far away as Toronto and Oakville to cut key minutes off their drive.
Third Tier: Areas that are within 800 meters of the proposed LRT and Go train stations in Hamilton. These areas will move up to second tier once the official announcements are made as to exact locations, then eventually move to first tier once the actual construction begins. Communities impacted by future LRT lines include: Winona, Green Acres Park, Greenford, Riverdale West, Eastgate, Corktown, Beasley, Durand, Central, Ainslie Wood East, Cootes Paradise, Westdale South, Mt. Hope, Buchanan, Mohawk, Bonnington, Southam, Centremount, Kirkendall South, Ancaster, Hill Park, Bruleville, Thorner, Burkholme, Crown Point West, Crown Point East, Homeside, and Pleasantview.
When the LRT stations are completed, communities within an 800-metre radius of these transportation improvements can anticipate a 10%–20% increase in their property values. The largest effect will be felt in older and more established neighbourhoods.
“Our research shows that when a highway increases accessibility to the region by providing new access or shorter commute times, residential property values rise by 12%–15% over similar properties not affected by the new highway,” says Don Campbell, author of the best-selling Real Estate Investing in Canada. “People need to understand that commute and travel distances are now measured in minutes, not kilometres.”
The 2010 Hamilton Transportation Effect report reviews the peer-reviewed academic research that has been conducted on the impact of light rail, highway expansion and road improvements in other parts of the world.
Rein Canada
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