Rail advocates love to claim that light rail and streetcars increase nearby property values even if hardly anyone rides them. According to their theory, the permanence of the rail line gives developers and potential buyers or tenants a sense of security that transit will be there when they need it.
This isn’t true in the case of the Norfolk light rail, a.k.a., the Tide. According to a study by economists at the Cleveland Federal Reserve Bank, Norfolk’s light rail actually reduced property values.
Rail transit, notes the study, could increase values because “homeowners could benefit from increased accessibility and transit related economic development.” On the other hand, “homes in a close proximity to rail transit could experience disamenity effects from crime, noise and parking issues.” Whatever the cause, the study found that “properties within 1,500 meters experienced a decline in sales price of nearly 8 percent.” At least in this case, the study concluded, “accessibility benefits do not outweigh apparent local costs.”
