3 ms·
> Will it cause the suburbia to lose value? There's a potential depending on how far out the it extends. Using property as an investment vehicle is a major pr
by cptskippy 3y ago
> Will it cause the suburbia to lose value?
There's a potential depending on how far out the it extends.
Using property as an investment vehicle is a major problem in the US. It compels property owners to support policies that retain or increase their property values (e.g. NIMBY).
There's a symbiotic relationship between commercial and residential property. Locality to commercial real-estate creates demand for residential property and scarcity of residential property increases the value of residential property.
The pandemic closed commercial real-estate and made a lot of people and organizations realize they don't need to be present in the office. This is disruptive to the market as whole because the value of both commercial and residential property is tied to demand for both. That is why there has been such a push towards getting people back into the office.
If people do not need to be in the office, then commercial real-estate loses all value. If people don't need to live near the office then residential property loses some of it's value.
This could have an impact on the demand for transit as well.