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The Streetcar Effect
PERFORMANCE OF RESIDENTIAL REAL ESTATE
WITHIN ½ MILE OF TUCSON STREETCAR ROUTE
VS THE TUCSON MSA
©201...
Performance Metrics:
• Rate ofTransaction Growth/Decline
• Rate of AverageValue Growth
• Rate ofValue Growth marked by per...
Percentage Growth In Transactions:
Numbers of Transactions
“Spike” At Each Stage of
Development
 TRANSACTIONS JUMPED 52% BETWEEN 2006 & 2007 AFTER
RTA PASSE...
Property Values Rise & Outpace Tucson
Market
Average Value Very Similar Prior To RTA Vote
2000-2002 Almost Identical
Values rise quicker during
“boom” period
Values...
Since Announcement, Value Performance
Has Outpaced The Rest of The Market
©2015 Kent Simpson All Rights Reserved
 DURING CRASH,VALUES FELL AT A RATE 88% LESSTHANTHE REST OF
TUCSON MARKET
 DURING EARLY STAGES OF RECOVER,THE STREETCAR ...
Commercial
Development
Student Housing, Market Rate
Apartments &
Downtown Core Showing Earliest Returns:
 Nearly 3000 bed...
The Renaissance
Of Downtown
Development Spurs Development
Conclusion:
TheTucson Modern Streetcar has
brought about a marked benefit to the
Residential Real Estate Marketplace.
The ...
The Streetcar Effect - Analyzing Real Estate Values In Tucson
The Streetcar Effect - Analyzing Real Estate Values In Tucson
The Streetcar Effect - Analyzing Real Estate Values In Tucson
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The Streetcar Effect - Analyzing Real Estate Values In Tucson

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Does fixed-route mass transit have an effect on real estate values? In Tucson it does. This study shows a direct relationship between the Tucson Modern Streetcar and increased performance in the real estate marketplace. To get a baseline value, analysis starts in the year 2000, with comparisons between the Tucson Metro market and the area within 1/2 mile of the streetcar route - highlighting different points during time periods from proposal to completion of the project. Conclusion: this mass transit project has had a significant positive impact on real estate values in Tucson, AZ.

Published in: Economy & Finance
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The Streetcar Effect - Analyzing Real Estate Values In Tucson

  1. 1. The Streetcar Effect PERFORMANCE OF RESIDENTIAL REAL ESTATE WITHIN ½ MILE OF TUCSON STREETCAR ROUTE VS THE TUCSON MSA ©2015 Kent Simpson Prepared for Senator BobWorsley AZ SenateTransportation Committee Chair
  2. 2. Performance Metrics: • Rate ofTransaction Growth/Decline • Rate of AverageValue Growth • Rate ofValue Growth marked by periods in timeline
  3. 3. Percentage Growth In Transactions:
  4. 4. Numbers of Transactions “Spike” At Each Stage of Development  TRANSACTIONS JUMPED 52% BETWEEN 2006 & 2007 AFTER RTA PASSES WITH STREETCAR AS PART OF PACKAGE  ANNOUNCEMENT OF TIGER GRANT (COMPLETING FUNDING OF STREETCAR) FOLLOWED BY 23.4% JUMP IN TRANSACTIONS  CONSTRUCTION OF STREETCAR LINE BRINGS 14.4% RISE IN TRANSACTIONS ***DATA ON TRANSACTIONS TOO EARLY FOR RESULTS AFTER BEGINNING OF SERVICE
  5. 5. Property Values Rise & Outpace Tucson Market
  6. 6. Average Value Very Similar Prior To RTA Vote 2000-2002 Almost Identical Values rise quicker during “boom” period Values gained are held stronger through “bust” and beginning of recovery.
  7. 7. Since Announcement, Value Performance Has Outpaced The Rest of The Market ©2015 Kent Simpson All Rights Reserved
  8. 8.  DURING CRASH,VALUES FELL AT A RATE 88% LESSTHANTHE REST OF TUCSON MARKET  DURING EARLY STAGES OF RECOVER,THE STREETCAR MARKET DOUBLEDTHE PERFORMANCE OFTHETUCSON MSA
  9. 9. Commercial Development Student Housing, Market Rate Apartments & Downtown Core Showing Earliest Returns:  Nearly 3000 beds in private student housing projects alone (The District on 5th – 760 beds – built for $33MM, sold for $67MM within 1 year of completion). The Herbert - 144 apts 1 North 5th – 96 apts & retail 1 E Broadway – 24 luxury apts & retail 212 New Businesses in Downtown Core opened since 2008 Marriott AC Hotel breaking ground in May Marriott Residence Inn proposed next to University Marriott 20+ Story Retail/Office/Residential project in proposal at northern end of streetcar Rio Nuevo/NorGen deal across from convention center just signed
  10. 10. The Renaissance Of Downtown Development Spurs Development
  11. 11. Conclusion: TheTucson Modern Streetcar has brought about a marked benefit to the Residential Real Estate Marketplace. The numbers just don’t lie. ©2015 Kent Simpson For More Information Contact: Kent Simpson NAR® &AAR® Board of Directors Simpson/Basch Partners of Tierra Antigua Realty-Downtown 216 E Congress Street Tucson, AZ 85701 Kent@SimpsonBasch.com 520-302-5368

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