Rail Life » Light Rail Real Estate

Could Transit Help Fuel A Recovery?

Nick Bastian — Tue, 09 Nov 2010 16:20:25 +0000

Could Transit Help Fuel A Recovery? is a post from: Rail Life

Around here, we have talked about the economic impact of the Phoenix light rail system many times. There have been several studies mentioned over the past couple of years to make those points, even though the obvious transformations have occurred. Known as a sprawling metropolis, the metro Phoenix area has indeed embraced a more urban lifestyle. The “drive until you qualify” mentality that was once so rampant is taking a back seat to a more realistic approach to housing affordability. Quality of life appears to be changing for large demographic groups of people, and they are taking into consideration a larger picture than just a house payment. Time on the road, along with the cost of a vehicle, fuel, and maintenance, are all being considered in the overall monthly outlay of resources.

Recently, my friend Jason Berman mentioned a very interesting article titled “The Next Real Estate Boom”. Knowing Jason as a super smart guy, and knowing my interest in the real estate business, I decided to take a close look at the article. The article speaks about many interesting topics – all of them seem to be very relevant to many discussions we have had here at Rail Life over the past few years. Given Jason’s mortgage background, I have a feeling that the talk of location efficient mortgages got his attention. While niche mortgages like green mortgages have been talked about here in the past, there is a lot of data suggesting that location efficient mortgages could be a significant part of an economic rebound.

“Fannie Mae has been experimenting with an interesting new product: “location efficient mortgages.” Instead of relying solely on credit score and income to determine whether a borrower qualifies for a mortgage, these loans use electronic map systems to take into account how much homeowners will have to pay for transportation.”

Part of the argument is this; You purchase a home near the light rail line and your cost of living is less, your carbon footprint is smaller and your quality of life is greater. After all, is that 2 hours spent behind the wheel of your car the most productive time of your day? Is living a more urban lifestyle something that millions of people may be looking to do over the next decade or so? Apparently, more than a few people think so.

According to this Brookings Institute article, the near future promises a huge demand for urban walkable neighborhoods.

“the Great Recession has highlighted a fundamental change in what consumers do want: homes in central cities and closer-in suburbs where one can walk to stores and mass transit. Such “walkable urban” real estate has experienced less than half the average decline in price from the housing peak.”

So, let’s go out on a limb and say that these mortgages become widely available. What’s the use? Is there enough demand for such a product on a large enough scale to attract people back to real estate as a viable investment in their future? Are there enough people looking at transportation and other costs when considering a monthly housing payment? Are greenhouse gas emissions even part of the overall equation?

The two largest demographics said to be leading the coming charge for a more urban lifestyle are baby boomers and the millennial generations, which are said to make up nearly half of the American population. Walkable neighborhoods near entertainment, conveniences, hospitals, and great public transportation systems are said to be where much of our future demand may lie. Creating ways to fulfill that demand will take proper planning along with public and private investment. Yes, there is a glut of property on the market right now, but what happens when the demand for walkable neighborhoods increase along with the demographics of growing sections of our populace? Will there be a resurgence in city living? Take a look at the Brookings article and see if it made you think of as many things as it did me. I’ll see if I can’t get one of my mortgage buddies to write some more about location efficient mortgages in the future. I’ll also see if we can’t dive a little deeper into the demographic shift that could be coming as well.

The map below shows a small sample of some of the homes near the METRO light rail system in the Phoenix area. We’ll be adding to the list in the near future. :)

View Homes Near METRO light Rail in a larger map

Score One For Living Green

Nick Bastian — Wed, 18 Aug 2010 12:10:23 +0000

Score One For Living Green is a post from: Rail Life

There are many ways to define green living and the reasons for people wanting to live a more green lifestyle can vary greatly. For some, it’s about saving the Earth and for others, it’s about saving some cash. Obviously, it can be both.

In the past, I have mentioned how cool I think the “Walk Score” application can be when choosing a place to live. Basically, Walk Score ranks a property and gives it a “score” based on walk-ability. Like most applications, there will be limitations to the accuracy of an outcome based on the data provided. While Walk Score provides a great way to gauge the “walk-ability” of a neighborhood, there have recently been new advances to bring the value of public transportation into a larger part of the equation. By introducing Transit Score and Commute Reports, many of the neighborhoods along transportation lines show people some of the benefits of living nearby. Currently, the neighborhoods along the METRO line here in the Valley are not included. For now, it looks like these super-cool rankings are limited to a handful of cities but the numbers are growing. Google Transit is a welcome addition around here, and I am hopeful that our local data feeds can soon be used by Walk Score to enhance their service locally.

“When deciding where to live and work, not only do you want to know what amenities and services are nearby, you also want to understand your transportation options. How easily can you walk, bike or take the bus? How long will it take to get from point A to point B? And how much will it cost?” – Walk Score

The type of data that Walk Score provides can be great when looking at the overall affordability of a home in a given area. Location and lifestyle, along with overall monthly expenses, can be key points in a smart person’s decision making process when choosing a “green” home. As far as home features are concerned, there is more than solar, low flow water fixtures, and high efficiency appliances. I believe that location can be a green feature, as well. Reducing the dependency on a car to get to restaurants, shops, entertainment, school, work, etc. can make a significant impact on the environment and on your wallet.

If you are curious as to what the Walk Score might be in your Valley neighborhood, try this nifty little search tool on for size…

Red Rox Condominiums – Neighborhood Spotlight

Nick Bastian — Tue, 27 Apr 2010 05:28:41 +0000

Red Rox Condominiums – Neighborhood Spotlight is a post from: Rail Life

The Red Rox Condominium complex in Phoenix has come up in several conversations lately. While it isn’t exactly right on the light rail line, it appears to be close enough for many. Red Rox is about one mile from the Priest and Washington light rail station, and approximately 1.5 miles from the 44th Street and Washington station. Since freeway access is convenient, there is golf near by, the Phoenix Zoo is close, and you can get to Mill Avenue or to the arenas for a Suns or Diamondbacks game quickly, people appear to be snatching these places up at prices which are about 1/2 of what they have been in the past.

I like the look of the complex. The grounds are well maintained and the amenities are nice for this price range. Because parking at Red Rox doesn’t appear to be a problem, the location seems to fit for the transit-minded, as well as those who could care less about smart growth or a walk score. When people ask about a “newer” home near the light rail line or for a place with an “affordable” price, they often quickly find their choices are not as plentiful as they thought. Yeah, there are some great communities along our light rail line and at prices much lower than they were just a few years ago, but the sub $100k market still doesn’t normally offer much in such great locations. Currently, there are several condos for sale at Red Rox for well under $100k.

Get a feel for what is going on by clicking to see what is currently –> for sale at Red Rox Condominiums.

While looking at the Red Rox complex recently, I saw a nice looking clubhouse, a nice pool and spa area, sand volleyball court, and well manicured grounds. With 360 units being built in 1999, there are 6 floor plans of which 4 are one bedroom units and 2 are two bedroom units.

If you are a light rail rider, you might want to have a bike to get to and from Red Rox. For the price, it currently looks to make $ense for a lot of people. Since the beginning of the year, there have been over 50 units close escrow or go under contract at Red Rox.

The following video shows some of the community features from this gated community. Our belief is that Red Rox is a good fit for many different lifestyles: vacation homes, young professionals, students, you name it. Take a look around and let me know if you have any questions or want to go check them out…

Below, you will find a sample of homes for sale or for lease at the Red Rox Condominiums.

$100,000 :: 5401 E Van Buren Street, Unit 1001, Phoenix AZ, 85008 - Fri, 18 May 2012

2 beds, 2.00 baths
Home size: 1,042 sq ft
Lot Size: 1,111 sq ft
Added: 05/07/12, Last Updated: 05/18/12
Property Type: Apartment Style/Flat, Residential, Condominium
MLS Number: 4755708
Community: Red Rox Villas
Tract: Red Rox Condominium

CHARMING 2 BED/2 BATH CONDO LOCATED RIGHT ACROSS FROM PAPAGO PARK! JUST MINUTES FROM DOWNTOWN PHOENIX, THIS HOME FEELS LIKE YOU ARE LIVING AT A FIRST CLASS RESORT! THE RESORT STYLE SWIMMING POOL AND SPA PROVIDE THE PERFECT ESCAPE FROM THE BUSSLING CITY. WORK OUT IN THE START OF THE ART FITNESS CENTER. PLAY SAND VOLLEYBALL WITH FRIENDS, OR ENJOY A QUIET EVENING IN THE ELEGANT RED ROX CLUBHOUSE. IF YOU'RE LOOKING FOR A HOME THAT IS ATTRACTIVE, COMFORTABLE AND CONVENIENT TO ALL THAT PHOENIX HAS TO OFFER, THIS HOME IS FOR YOU! ONE CAR GARAGE INCLUDED WITH THIS CONDO!!

Listed with Realty Executives