When it comes to Washington, D.C., proximity to a Metro station generally increases the price of houses, according to a report from Freddie Mac.
According to the report, the average price premium for a typical house in the D.C. area that is located within a mile of a Metro station is $8,640. Freddie Mac said the price premium is highest for houses within one-quarter mile of a Metro station (an 8.6 percent increase); and declines as homes get farther from the train, to 7.5 percent within one-quarter to one-half mile and to 3.9 percent within half a mile to a mile.
“Proximity to a Metro train station is an amenity that is valued by homebuyers in the D.C. metro area, and it is reflected in increased house prices,” Freddie Mac Chief Economist Sam Khater said in a release. “Homebuyers typically pay almost $9,000 more to be within a mile of a Metro station, and the premium rises to $40,000 to be within a quarter of a mile.
“However, there’s a sweet spot when it comes to the value realized based on proximity and price segment,” Khater said. “The highest price premium is for homes sold between $310,000 to $415,000 ($467,008 is the average home price in the D.C. metro area). Local residents that fall in this category tend to depend more on public transport and thus place a higher premium on proximity to a Metro station.”