The Calgary Transportation Effect Research Report on the Impact That Transportation Improvements Will Have on Calgary’s Property Prices
People Living in Key Areas of Calgary Will See
Their Property Values Jump as a Result of the Coming Transportation Changes
To Download the full report Click HERE
News Release
Calgary, AB — September 17, 2007 — The Real Estate Investment Network™ (REIN™) is pleased to release its latest research report titled The Calgary Transportation Effect that details the impact of the upcoming transportation improvements on housing in Calgary. The report’s authors estimate the benefit to be in the range of 10%–20% in selected neighbourhoods.
Transportation accessibility is one of the eight key fundamentals that drive real estate values up or down. This report focuses on how the completion of the northern portions of the Ring Road and the expansion of the CTrain into the northeast and northwest will improve accessibility to the downtown core, which in turn will raise the value of real estate that is in close proximity to these transportation improvements.
“When people look for a property to purchase — be it their primary residence or an investment property — they take into consideration affordability, commute times and commute costs,” said Don Campbell, the report’s lead author and president of the Real Estate Investment Network. “If you can reduce commute and travel times to and from an area, you make that area much more desirable as a place to live, and thus an increase in demand occurs.”
Their research has found that there are three “Tiers of Impact” that will occur in the Calgary region:
First Tier, which will witness the most positive affects from the combined transportation improvements: NE — Falconridge, Temple, Martindale, Pineridge; NW — Scenic Acres, Ranchlands, Silver Springs, Hawkwood.
Second Tier, will also feel a positive impact, yet not as dramatically: NE — Marlborough Park, Taradale, Coral Springs, Penbrook Meadows, Forest Heights; NW — Bowness, Greewood, Tuscany, Valley Ridge.
Third Tier regions will feel the ripple effect outward from the main impact areas; these include Cochrane, Balzac and Airdrie, as well as new developments near the Ring Road.
When the Ring Road and the new LRT stations (scheduled to open in 2008) 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,” adds 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 kilometers.”
The Calgary 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.
“Gone are the days when you could get downtown from anywhere in Calgary in under half an hour. Accessibility to highways and the LRT is now a top priority for home buyers and renters,” adds Campbell. “These transportation improvements will unleash the inherent value in these markets, such that in the future these areas will outperform the rest. If the market goes up everywhere, these areas will increase by about 10%–20% more. If the values everywhere drop, these will drop by 10%–20% less.”
About the Real Estate Investment Network™
Founded in 1993, the Real Estate Investment Network™ (REIN™) has grown over the years to become Canada’s leading real estate research, investment and education organization. It serves more than 2,700 member clients who own more than 18,200 properties (valued at $2.01 billion) across the country. Members use the unbiased research and proven systems to invest in properties in economically strong regions across the country. REIN™ does not sell or market real estate to its members or the general public, but instead conducts objective and unbiased research, analysis and investor education.
The foundation of REIN™’s work is the research and analysis of current real estate trends and patterns. This information is then disseminated to members through regular seminars in Toronto, Vancouver, Ottawa, Calgary and Edmonton, and via research reports that detail current and emerging trends. REIN™’s primary purpose is to provide expert assistance to its members and other Canadians to assist them in making sound decisions about purchasing principal residences and investment/recreational real estate. This Gateway Report is one such research educational publication, as are Don R. Campbell’s bestselling books Real Estate Investing in Canada (2005) and 97 Tips for Canadian Real Estate Investors (2006).