Demand for Homes in Car-Dependent Areas Surpasses That for Homes in Transit-Accessible Areas

Prices of homes on the market in car-dependent communities are up significantly more than listed homes in communities with public transit options.

According to Redfin, home prices in areas with little-to-no public transit rose nearly 33% since January 2020, while homes in transit-accessible areas rose just 15.6%. The report found that the median home sales price rose to $418,100 in car-dependent areas over the past two years, a record high, while the home sales price in transit-accessible areas jumped to $540,500, also a record high. How is it determined if a place is car-dependent or transit-accessible? The report defined transit-accessible as having convenient public transportation options for most trips, while areas considered “car-dependent” is defined as having few to no nearby public transportation options.

Not surprising, considering demand in the suburbs has surpassed demand in urban areas over the past two years. Homes in car-dependent markets also flew off of the market quicker, lasting a median of 19 days, compared to homes in transit-accessible areas, which lasted a median of 38 days. Homes in car-dependent areas were also more likely to sell above listing price with 56% of inventory doing so. In transit-accessible areas, 36.4% of homes sold for over their asking price.

Builder.com reported that new home construction in urban areas like Washington, D.C. and Los Angeles fell in the past two years, while smaller cities and suburban areas are seeing higher numbers of new construction than in the past.