Nowadays, public transit is very essential. People prefer to take the train or the bus and arrive in the office or the school faster and in a relaxed manner. Accessible public transit helps us save lots of time, effort, and money. It also helps decongest the roads since less people are bringing their cars and more people prefer to ride public transportation. However, as more transit stations are being established, more rental housing properties need to be removed to pave way for it. This causes increased shortage in housing, particularly in British Columbia.
Indeed, the establishment of a transit line is a double-edged sword for the construction management industry. Let’s take a detailed look at the impact of transit lines to rental housing and see if there is a possible way to solve the problem while enjoying the market advantages.
How do transit lines affect rental housing?
Below are the positive effects of transit lines, particularly for developers:
- It causes rental rates to shoot up.
Studies have proven that the construction and utilization of transit lines increase housing prices, not just in the line’s immediate community, but also in the nearby areas with access to the transit. Why it happens is common sense: a very accessible transit line provides numerous benefits for the people living nearby: less expense, less stress. This means that anyone who will buy such property will surely get added value, which will surely be translated to dollars. In fact, one research shows that single-family homes located near public transit stations can cost up to 32% more than other properties.
- It also causes demand to spike up.
As driving becomes more stressful and looking for a house near the business area gets more challenging, the most feasible option you have is to look for a property where public transit is very much accessible. This may be why despite the rising prices, the demand still increases.
On the other hand, here are the negative effects:
- It requires demolition of some rental properties along the way.
For transit lines to be built, huge spaces are needed. And in the process of clearing some spaces, many rental housing properties will have to be removed. Because of this, the shortage in rental housing worsens, therefore driving prices high, but not in the benefit of the developers nor the renters.
- It may cause some nuisance.
Construction of transit lines may cause inconvenience because of the noise and dirt it may cause. These nuisances are not just limited during the process. When the line starts operating, it will drive more people, which will probably lead to more trash and greater noise.
Both for developers and for potential property owners, this may be a tough call since you cannot experience the positive ones without having a taste of the negative ones. However, construction management companies like ENM Construction Management in Langley are suggesting one probable step that could help developers enjoy these advantages while addressing rental housing shortage: purpose-built rentals.
Purpose-built rentals are properties made for long-term rentals, with multiple units in one establishment. It will help industry players replace removed properties one-for-one without occupying as much space. With this, they do not just contribute to efforts in meeting rental housing demands; they also gain the chance to take advantage of the market opportunities transit lines provide.
The nuisances, on the other hand, may be addressed by proper construction management, from the planning to maintenance, which is another priority of most construction firms nowadays.