Edmonton 2010 Upate - The Impact of Transportation Changes On Real Estate
• Edmonton transportation improvements will deliver a 10%–20% enhancement of real estate valuesin the regions most affected. 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 Alberta values drop, these will drop by 10%–20% less.
• With the completion of the Ring Road and the extension of the LRT, real estate prices in key neighbourhoods will increase more quickly than other regions of the city due to improved transportation linkages. Improved accessibility drives real estate demand.
• Values in older and more established neighbourhoods are impacted more significantly than in newer developments.
• In studies of the effect of transportation improvements on real estate in other jurisdictions around the world, it was found that real estate value increases occur for properties located within 800 meters of stations on the new transportation and 800 meters from exits on new major highway improvements.
• The areas that will be most significantly impacted by transportation upgrades are divided in to the ‘Four Tiers of Impact’
First Tier: Areas which will witness the most positive impact of the transportation improvements, most of which are located on the 111th street corridor. This region will enjoy the twin impact of the Ring Road access and LRT expansion: Blue Quill, Ermineskin, Sky Rattler, Twin Brooks, Park Allen, McKernan, and Belgravia. Lewis Estates, Belmead, Aldergrove, and Thorncliff will all experience a positive impact from proximity to the northwest section of the ring road as well as the west LRT line once it is built.
Second Tier: Areas which will also feel a strong positive impact with one of the major improvements significantly increasing long term demand: South Mill Woods, Pleasant View, Lendrum, Jamieson, Glastonbury, McCauley, east Queen Mary Park, McDougall, Spruce Avenue, and Prince Rupert.
Third Tier: Areas which will feel the impact in years to come once the Northern Section of the Ring Road is designed and completed: (NW) Castledowns neighbourhoods, Lago Lindo; (NE) Miller, Casselman, Kirkness, Fraser, Rundle Heights, Abbotsfield. Kirkness and Fraser will be updated to a Tier 1 when construction begins on the northeast section of the Ring Road and the LRT extension to Gorman receives funding.
Fourth Tier: Regions which will feel the ripple effect outward from the main impact areas. These include St. Albert, Ft. Saskatchewan, Devon, and Sherwood Park
There are negative effects (nuisance, property crime, noise, increased traffic, etc.) on properties located in the immediate vicinity of many stations but this does not have a negative effect on the price increases.
New in the 2010 Addition:
The addition of the Downtown to NAIT LRT Line to Edmonton’s transportation network resulted in an update to our report with new neighbourhoods in the northern portion of the City being affected. In addition, the report includes information on neighbourhoods that would be impacted by the expansion of Edmonton’s LRT west and southeast.
The report also includes new information on the northwest and northeast portions of Anthony Henday Drive and communities which will experience a price increase when those portions of the road have been completed.
Download the full report here.