More American cities are considering bus rapid transit, or BRT, as a cost-effective method to expand and improve transit. One of the knocks against BRT, as opposed to rail, is that it supposedly doesn’t affect development patterns. But a new study [PDF] by Arthur C. Nelson of the University of Arizona and released by Transportation for America finds that BRT lines can indeed shape real estate and attract jobs — if the projects are done right.
Nelson examined real estate investment, commercial rents, and multi-family housing development around BRT routes during the early 2000s and the first half of this decade. He found that in Pittsburgh, Cleveland, Las Vegas, Los Angeles, and other cities with high-quality BRT lines, real estate near the routes tends to be valued at a premium and is capturing an increasing share of development.
For example, in downtown Cleveland, offices within a quarter-mile of the Healthline BRT rent at prices 18 percent higher than downtown office space outside walking distance of the line. In Eugene, Oregon, the premium is 12 percent.
Proximity to BRT lines appears to be growing more appealing over time. Between 2000 and 2007, Census tracts within a quarter mile of BRT routes captured about 11 percent of total office space development in the regions the authors studied. From 2007 to 2015, that share grew to 15 percent.
“This is not trivial,” said Nelson during a presentation at the annual meeting of the Transportation Research Board this morning. “My sense is that this distribution will keep gaining share.”