How much do train tracks affect values?

[Charles Horning]

1. A study conducted by researchers at the University of Colorado found that homes located within 0.1 miles of train tracks sold for an average of 12.3% less than similar homes located further away from the tracks. The study also found that the closer a home was to the train tracks, the larger the discount.

Source: "A Signal of Neglect: Abandoned Railroads and Property Values." Journal of Real Estate Research, vol. 36, no. 1, 2014, pp. 1-18.

1. A study by Zillow found that homes located within 250 feet of train tracks sold for 2.6% less than similar homes located further away. However, the study also found that homes located within 50 feet of train tracks sold for 4.2% less than similar homes located further away.

Source: "Does Living Near a Train Station Boost Home Values?" Zillow, 6 Aug. 2019.

1. Another study conducted by researchers at the University of Wisconsin-Milwaukee found that homes located within 500 feet of train tracks sold for an average of 8.4% less than similar homes located further away. The study also found that the closer a home was to the train tracks, the larger the discount.

Source: "The Impact of Rail Transit on Property Values: Evidence from Milwaukee, Wisconsin." Journal of Transport Economics and Policy, vol. 44, no. 2, 2010, pp. 161-188.

Overall, these studies suggest that train tracks can have a negative impact on a property's value, with discounts ranging from 2.6% to 12.3%. However, the actual impact will depend on various factors such as the distance from the tracks, frequency of trains, noise level, and preferences of potential buyers.

Curious if anyone has any insight that either supports or disproves these findings?

[David Ramirez]

Makes sense! Living next to a busy highway or train track can drive you up the wall with all the noise

[David Ramirez]

Makes sense! Living next to a busy highway or train track can drive you up the wall with all the noise

[Joe Villeneuve]

depends on the zipcode

[Rene H.]

Thanks for sharing, I'm actually looking at a triplex purchase across the road from a train track (still active, freight line, seller notes say no train horn, located in CO) and I was wondering about this and how I should factor it into my offer. I'm wondering the impact on rentability... I can't decide if it will deter renters after I do renovation. Curious if anyone has first-hand experience with buying/renting near an active track!

[Ben Einspahr]

@Rene H. Triplex financing gets very tricky if it is your primary. Can not do traditional 5%. Google FHA Self sufficiency test. Talk to a lender ASAP. Ill follow up with some resources.

[Carlos Ptriawan]

Quote from @Charles Horning:

1. A study conducted by researchers at the University of Colorado found that homes located within 0.1 miles of train tracks sold for an average of 12.3% less than similar homes located further away from the tracks. The study also found that the closer a home was to the train tracks, the larger the discount.

Source: "A Signal of Neglect: Abandoned Railroads and Property Values." Journal of Real Estate Research, vol. 36, no. 1, 2014, pp. 1-18.

1. A study by Zillow found that homes located within 250 feet of train tracks sold for 2.6% less than similar homes located further away. However, the study also found that homes located within 50 feet of train tracks sold for 4.2% less than similar homes located further away.

Source: "Does Living Near a Train Station Boost Home Values?" Zillow, 6 Aug. 2019.

1. Another study conducted by researchers at the University of Wisconsin-Milwaukee found that homes located within 500 feet of train tracks sold for an average of 8.4% less than similar homes located further away. The study also found that the closer a home was to the train tracks, the larger the discount.

Source: "The Impact of Rail Transit on Property Values: Evidence from Milwaukee, Wisconsin." Journal of Transport Economics and Policy, vol. 44, no. 2, 2010, pp. 161-188.

Overall, these studies suggest that train tracks can have a negative impact on a property's value, with discounts ranging from 2.6% to 12.3%. However, the actual impact will depend on various factors such as the distance from the tracks, frequency of trains, noise level, and preferences of potential buyers.

Curious if anyone has any insight that either supports or disproves these findings?

 true, that's why most zone near the train track is multi-family zone.

[Marcus Auerbach]

Seems about right. Trains are more disruptive then say a freeway, which is more of a constant noise our brain starts to tune out quickly. There is a new built home sitting on a ridge here in town without offers for months, someone said: perfect for a train enthusiast. I guess. Still waiting for one.

[Carlos Ptriawan]

For some people with noise sensitivity, train noise is a big issue. But it may not be an issue for buyer from different background. Asian buyer usually does't care. The problem with train is mostly because many zone near train station is multifamily hence lower pricing. It's also interesting that the highest price house is usually the most secluded. However, the reverse did happen in asia, usually the most expensive is the centrally located place in the city where there's most activity. It has its own cultural value aspect as well. 

[Rick Albert]

It makes sense. I'm pretty flexible when it comes to buying. For the right price put me on a main street or even near a freeway. Train tracks is a hard no, even if the property was free.

Keep in mind it's more than just the noise. I've been in properties near train tracks and the property literally shakes when a train goes by. I can only imagine the long term damage that would occur. There are always going to be better options in any market. Even if it means waiting.