Railroad tunnel connecting N.J., N.Y. will increase property values, study says
(The following story by Steve Strunsky appeared on The Star-Ledger website on July 30, 2010.)
NEWARK, N.J. The planned trans-Hudson commuter rail tunnel will boost home values by thousands of dollars and help hold down property tax rates in areas where commuting times will be cut, according to a report released today by a regional planning group.
The report by the Regional Plan Association also says the Access to the Regions Core, or ARC tunnel will double the number of commuters living west of the Hudson River who would have commutes of less than 50 minutes into Manhattan.
"There is no more clear-cut instance of a project with tremendous public benefits that will improve the region for decades to come," Bob Yaro, president of the planning group, said in a statement.
The numbers were met with skepticism by some.
"I think its a plus, but I would never put a number on that," Roy Scott, owner of three Remax realty franchises in Essex County, referring to the higher real estate values. "I would love to know how they get this stuff."
The numbers cited in the report are based on an analysis of 45,000 home sales within two miles of commuter rail stations before and after three prior rail enhancements: Midtown Direct Service on the Morris & Essex Line; the Montclair Connection for the Montclair-Boonton Line; and Secaucus Junction, which serves the Pascack Valley and Main/Bergen/Port Jervis Lines.
The value of homes within a half mile, or walking distance, of a station would increase by $29,000, while homes within two miles would appreciate by $19,000, the report concluded.
Juliette Michaelson, a senior planner who co-authored the report, said the analysis incorporated a number of factors, including the condition of the real estate market.
When completed in late 2018, the tunnel is expected to double NJ Transits current capacity of 46,000 passengers during the morning peak period. It will also create transfer-free rides into Manhattan on 11 of NJ Transits 12 rail lines.
The project will connect NJ Transits existing rail network and MetroNorths Port Jervis and Pascack Valley Lines with a new station at 34th Street in Manhattan.
New Jersey, federal and Port Authority of New York and New Jersey funds will pay for the $8.7 billion project. Work on its first major portion, a tunnel beneath the Palisades from North Bergen to Hoboken, could begin in six months, said Michael Burke, an NJ Transit spokesman.
The planning association also said the project would boost total property values by $18 billion, helping to hold down property tax rates. William Dressel, executive director of the New Jersey State League of Municipalities, said the figure was, "not a surprise at all," and would help cities and towns meet the new 2-percent cap on property tax increases.
Not everyone embraced the analysis. Jeff Tittel, director of the New Jersey Sierra Club, said one result of shorter commutes will be to prompt more New Jerseyans to seek work in Manhattan, depriving New Jersey of income tax revenues. Likewise, Tittel said, home values along rial lines in New Yorks Orange and Rockland Counties will increase, even though that state is not helping pay for the project.
