26 Mar How much will Cedar Avenue construction affect my property value?
How much will Cedar Avenue construction affect my property value?
The upcoming construction for a bus rapid transit lane on Cedar Avenue will result in a widened roadway. The question posed by homeowners is, how will this affect my home’s value?
When a home backs to a busy road, the property cannot compete at full retail value. I believe the discount for a locational factor is roughly 5%, at least that’s what it was in our stable market of the 1990’s. I can’t be as definite in the current marketplace. Other situations that force a discount price on homes include close proximity to commercial property, noise factors, negative slope lots and poor views.
During the two years of construction, fear of the unknown will bring the values down below the normal discounted amount. The unknown in this case is, how will it look, how close will the cars be,how close will the buses be to my backyard, placement of walking trails, what is the landscape plan, how will the tree coverage and fences be replaced, and more.
During construction, the negative impact to the value of homes backing to Cedar Avenue will be most severe.
Once the project is completely finished and the view from the houses is fully restored, complete with landscape replacement, the impact on values to those homes will likely return to the standard discount amount. Unfortunately, some homes will suffer more of an impact than others. Homes whose yards were not very deep to start with will experience a more permanent negative impact.
Homeowners in the nearby vicinity will experience some added appreciation because their homes may be in walking distance to one of the transit stations. Imagine walking from your Apple Valley Home and going to Downtown Minneapolis in record time.
For more information on the Cedar Avenue construction project, click here to read an additional post. Cedar Avenue Transitway also has a dedication page with great information about the project.
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