The MBTA commuter rail affect South Coast (Boston area)

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The MBTA commuter rail affect South Coast (Boston area)

Javon Williams
Rental Property Investor · Boston, MA · Member since 2018 · 6 posts · 5 votes

Whats is up, BP!

I've been following the MBTA plans for some time as an avid commuter. The MBTA will be expanding its services to the south coast to towns like Taunton, Fall River, & New Bedford. What I would like to know is how will this affect those towns? AS a commuter myself I understand the importance of access. Also, how do investors look at this expansion? What are your thoughts on this project? Good or Bad? For those of you who may not know about this project, I attached a quick link to the map to give you a better idea of what I'm talking about.


Happy Investing Everyone!



https://www.mass.gov/files/documents/2019/05/23/dot-scr_Full_Build_CorridorMap.pdf


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Lien VuongBusiness Member
Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
7y

It's a positive development for the community as habitants of the towns as well as home values. From an infrastructure standpoint it lessens the load of the highway traffic allowing locals to commute with more ease. The home values do generally increase as result because then these towns become more desirable in spite of the distance because the train would mitigate those problems. 

Economically it would bring in another stream of revenue for the city/towns and allow its citizens to get to Boston area jobs where wages are higher and bring it back to that community to inject economic spending. 

As a result of those macro benefits, investors will start to pay attention to the towns as they're becoming more gentrified and more attractive to rent and develop. In that you will see the real change. 

I would follow the trains and figure out what's the state's next plan of action and get ahead of the curve. I think there's a lot of appreciation benefits and more protection in towns with highway and public transit access even in the down economy. No matter what market condition, you need a job to make money and a home to live in. 

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  • Nick Earls
    Developer · Tewksbury, MA · Member since 2013 · 43 posts · 22 votes
    7y

    Increased public transportation can only help investors and we should definitely support continued infrastructure improvements in the state.  Areas within walking distance to the T should have the most benefit, but it's reasonable to expect this project to be an economic boon to the whole region.

    2Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    @Javon Williams  I lived in Scituate from 1985 to 2017, so we lived through the new commuter rail there.

    The homes on or close to the train tracks took a severe beating value-wise, not to mention the disturbance of peace and quiet.  Luckily, the town hammered out an agreement with the MBTA that they would not blow the horn at grade crossings.  That would have made things far worse.  For direct abutters, the MBTA did offer some sort of help with reducing noise through sound insulation.  I can't imagine it would do a lot of good though.

    We were 1,000 feet from the tracks and could definitely hear the rumble of the diesel train.  If the windows were closed, it wasn't loud at all.  If they were open, it was somewhat annoying. 

    Personally, I'd try to live no closer than 2,000 feet, unless they blow the horn on that line.  In that case, I'd like to be at least a mile away.  Preferably 2 miles.

    On a side note, that agreement to not blow the horn will last until the first drunken teenager wanders out on the tracks and gets splattered.  Then sounding the horn will be "for the children".  That will further degrade home values for those in close proximity.

    Scituate values have been on a long steady increase (except for the crash starting in 2006 and running to 2009) since the time we bought the home in 1985, so I can't point to a direct correlation between commuter rail service and home values rising - though that seems to be the conventional wisdom.

    Service started in 2007 and the real estate crash was well underway, so any additional value gained by the new commuter rail service would in my opinion be dwarfed by the nose-diving home prices.

    I do think in general that it's a net positive for those wanting to work in Boston - or at least parts of Boston that are within walking distance of Government Center / Financial district / South Station, etc. 

    I'm not big on predicting the future, but I'd bet $1.00 that Fall River and New Bedford will see a modest increase in home prices as well as rents.

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  • Javon Williams
    OP
    Rental Property Investor · Boston, MA · Member since 2018 · 6 posts · 5 votes
    7y

    @Charlie MacPherson @Nick Earls thanks for the insight. 

    0Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    7y

    I believe more access to Boston will improve the overall economies of city’s with public transportation options. 
    Boston real estate prices have left the surrounding area almost untouchable for first time home buyers so people look to buy in areas that are “commutable” to the city. That, in my opinion, is the reason cities like Lowell and Worcester with commuter rails have been seeing such a development boom in the last 5 years. As public transportation expands so will the “commutable” areas and that will bring more professionals looking to buy their first property to these areas. 

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  • Javon Williams
    OP
    Rental Property Investor · Boston, MA · Member since 2018 · 6 posts · 5 votes
    7y

    @Jonathan Bombaci that's my feeling about it. Thanks for the message. 

    0Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    It's a positive development for the community as habitants of the towns as well as home values. From an infrastructure standpoint it lessens the load of the highway traffic allowing locals to commute with more ease. The home values do generally increase as result because then these towns become more desirable in spite of the distance because the train would mitigate those problems. 

    Economically it would bring in another stream of revenue for the city/towns and allow its citizens to get to Boston area jobs where wages are higher and bring it back to that community to inject economic spending. 

    As a result of those macro benefits, investors will start to pay attention to the towns as they're becoming more gentrified and more attractive to rent and develop. In that you will see the real change. 

    I would follow the trains and figure out what's the state's next plan of action and get ahead of the curve. I think there's a lot of appreciation benefits and more protection in towns with highway and public transit access even in the down economy. No matter what market condition, you need a job to make money and a home to live in. 

    [email protected]
    The Elle Group5153 Reviews
    WebsiteView Page
    3Reply
  • Gualter Amarelo
    Investor · Fall River, MA · Member since 2014 · 399 posts · 300 votes
    7y

    Hi @Javon Williams I've been investing in Fall River, Taunton an New Bedford since 2008. 

    I've got strong connections with the economic development department in Fall River as well as a strong friendship with the mayor. I have been told by the people who have all the knowledge that the train to the southcoast will be completed in 2023.

    We are already seeing the local investors making moves to pickup properties along the train routes. If you look at other cities that have rail access to Boston for example Worcester and Brockton there have been significant improvements in their home values and economies in direct relationship.

    I am currently buying 24 more unit in Fall River and will continue to invest in the southcoast for years to come. 

    Even before the train arrives these cities still have some of the highest cap rates in the state.

    Cheers to your success!

    3Reply
  • Jennifer S.
    Investor · London · Member since 2017 · 160 posts · 82 votes
    7y

     Hi @Gualter Amarelo, thanks for the helpful comments above. I just sent you a direct message. In the coming months I am looking to 1031 into some land in Taunton (depending on prices--so hard to gauge from redfin what can actually be built on). So I'll be looking for a buyers agent. Look forward to speaking

    0Reply
  • Michael Belmore
    Rental Property Investor · MA · Member since 2020 · 98 posts · 77 votes
    6y

    Hi @Javon Williams, 

    You already have great answers on the technical side on how the new rail will affect these towns. In the "gossip" world I keep hearing and getting questions about Fall River. Take that for what its worth; but it could be a good sign folks are discussing/contemplating. - Mike

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