The Housing Interpreter: Transportation in Richmond—Moving Forward

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Housing InterpreteR CURRENT TRENDS IN REAL ESTATE AND THE RICHMOND REGION A PUBLICATION OF THE RICHMOND ASSOCIATION OF REALTORS®

TRANSPORTATION

NOVEMBER 2013

Richmond: MOVING FORWARD in

IN THIS ISSUE : • PUBLIC TRANSIT AND PROPERTY VALUES • BRT IN RICHMOND: ARE WE THERE YET? • TRANSPORTATION AND OPPORTUNITY: CONNECTING THE DOTS WeAreTheR.com Cover image created by John Dolci

Public Transit and Property Values This

year, the National Association of REALTORS®, in cooperation with the American Public Transportation Association and the Center for Neighborhood Technology (APTA), published a study on how property values located within a half-mile of high frequency transportation (within the “transit shed”) have held their value compared to other properties in a given region during the recession. The report—titled “The New Real Estate Mantra; Location Near Public Transportation”— looked at property values between 2006 and 2011 in five regions with established public transportation systems: Boston, Chicago, Minneapolis-St. Paul, Phoenix, and San Francisco.

The incorporation of these study regions signifies a wide geographic distribution, as well as a sample of heavy, commuter, and light rail systems.

Across the study regions, property values within the transit areas outperformed the region as a whole by 41.6 percent. “Transportation plays an important role in real estate and housing decisions, and the data suggests that residential real estate near public transit will remain attractive to buyers,” says Lawrence Yun, NAR’s chief economist. “When consumers choose a home, they also choose a lifestyle. Shorter commutes and more walkable neighborhoods matter to a growing number of people, especially those living in congested metro areas.”

Values for properties in proximity to public transportation displayed more resilience during the economic downturn. Homes with higher levels of transit access had the strongest price resilience within and across regions.

The following are examples of cities cited in the report with notable outperformance in home values within close proximity to public transit, compared to the rest of the region: In Boston, MA, home values near transit were valued 129 percent higher; in Chicago, IL, 30 percent higher; in San Francisco, CA, 37 percent higher; In Minneapolis-St. Paul, MN, 48 percent higher; and in Phoenix, AZ, homes near public transit were valued 37 percent higher.

“When homes are located near public transportation, it is the equivalent of creating housing as desirable as beach front property,” said APTA President and CEO Michael Melaniphy. “This study shows that consumers are choosing neighborhoods with high-frequency public transportation, because it provides access to up to five times as many jobs per square mile as compared to other areas in a given region. Other attractive amenities in these neighborhoods include lower transportation costs, walkable areas and robust transportation choices.”

According to the report, this study was conducted in an effort to provide consumers and planners with better information, and to encourage greater investment in transit and more sustainable development patterns. The report can be accessed at apta.com.

Access to # jobs per sq mile Monthly transportation costs City Transit Shed Region Transit Shed Advantage Transit Shed Region Transit Shed Savings Boston 170,334 57,563 2x more jobs $746 $1,097 $351 San Francisco 172,581 56,933 3x more jobs $746 $1,112 $346 Chicago 139,908 56,300 2x more jobs $775 $1,074 $300 Minn.-St.Paul 132,132 37,484 3x more jobs $840 $1,164 $324 Phoenix 88,241 32,290 2x more jobs $1,006 $1,181 $175 Note: not shown in the chart above, but living near bus rapid transit in Boston resulted in access to five times more jobs per square mile

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Bus Rapid Transit (BRT) in Richmond: Are We There Yet?

This year, at the Urban Land Institute (ULI) of

Richmond’s Reality Check event—where citizens of the region came together to map out how they would like to see Richmond grow and develop over the next few decades—the consensus among participants called for four major public transit routes along Route 250/Broad St., Route 360/Hull St., Route 60/Midlothian Turnpike, and Route 1/Jefferson Davis Hwy.

Reverend Ben Campbell, Pastoral Director of Richmond Hill and Chair of the transportation task force for the Maggie L. Walker Initiative for Expanding Opportunity & Fighting Poverty, participated in the event and witnessed most other participants mapping out all the same routes as those he and his colleagues have been discussing for several years now.

“Richmond—the forty-second largest U.S. city— is ninety-second out of the one hundred largest cities, in terms of public transportation and job access. This is shameful,” Campbell said. He added that currently only 27 percent of jobs (which he adds is an inflated estimate) are accessible by public transit.

After researching a range of public transportation modes worldwide, the Anti-Poverty Commission and other regional experts have concluded that Bus Rapid Transit (BRT) is the most practical answer to the region’s need for an efficient and accessible public transportation system. “BRT is cheaper than rail, takes less time to develop, and represents an investment that people know will stay there,” Campbell explained.

Sometimes described as a “surface subway,” BRT is built for the capacity and speed of a light rail system with the flexibility, cost, and simplicity of a bus system. The system is designed to maximize efficiency and minimize delays. He cites Cleveland, Ohio, as a city that exemplifies

the strong return on investment from adding BRT lines.

“After an initial $200 million in capital investment, there has been $5.2 billion in new investment along those transportation lines,” he remarked. He added that during the economic downturn, property values along BRT routes in the country maintained their value 100 to 130 percent better than other properties.

A mission of the Mayor’s Anti-Poverty Commission in the upcoming year is to get the BRT pilot route along Main and Broad Streets adopted, in cooperation with RVA Rapid Transit and a number of other organizations in the area. But the long-range goal is to establish the four trunk lines on metropolitan Richmond’s four major arteries. “Our proposal is that we get a designated source of revenue and have a single authority—like the Richmond Metropolitan Authority (RMA)—to operate BRT trunk lines. Local jurisdictions and local employers can then add feeder lines. If we simply put BRT on the four major trunk roads, that would bump up job access to 53 percent,” Campbell explained. “The obvious feeder lines, such as the four and a half miles from Parham to Short Pump and from Broad to Route 1, would increase job accessibility to 80 percent—positioning us as one of the top ten cities in the country, in terms of public transit and job access.”

Campbell notes that there is currently a high level of imbalance in the region, with higher income housing in the suburbs and higher income jobs in the city; while lower income housing is in the city and lower income jobs are in the counties. “Public transportation can help alleviate this disparity,” he said.

The Transportation task force—working closely with the Employment task force—has looked at three

(The figure to the left represents the current level of access to jobs by public transportation.)

ways to approach getting workers into entry level employment: Bringing jobs to where the people are; bringing people to where the jobs are (with mixed-income housing); and developing a strong public transit system (so that it doesn’t matter so much where one lives). The first two approaches obviously involve much greater lead time than the latter.

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“Richmond—the forty-second largest U.S. city—is ninety-second out of the one hundred largest cities, in terms of transportation and job access. This is shameful,” Campbell said.

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“We believe that the case for public transportation in metro Richmond is both social and economic. But, economically, the case is not just about poverty or the need for employment—though, there is that—it’s that this region will not function well or have the kind of economic energy it needs until it has proper public transportation,” Campbell concluded. “We need to get the trunk lines now, not 20 years from now,” Campbell said. “If we don’t get them now, we won’t have development along them and any development that happens won’t be served by them. We can’t allow another 20 years of urban sprawl.”

A presentation on BRT he uses to help inform various groups in Richmond identifies U.S. cities with exemplary public transit systems. “Cities come to be known by their form of public transportation,” he said. How will Richmond be known? We have roads left to travel to find out; but thanks to involved citizens like Ben Campbell, it sounds like we’re headed in the right direction.

(The figure to the left represents the potential level of access to jobs with the proposed bus rapid transit trunk lines.)

Transportation and Opportunity: Connecting the Dots

Looking

toward the future of the Richmond region in terms of its continued growth and development, there is no question that what will make all the difference in attracting employers and skilled professionals— ultimately producing a vibrant region with a flourishing economy— is opportunity. A report published in December 2012 by Housing Opportunities Made Equal (HOME) of Richmond, titled “Where You Live Makes All the Difference: An Opportunity Map of the Richmond Region,” quantifies opportunity within the region by equally weighing, and then mapping, 22 wide-ranging socioeconomic variables that measure core factors in housing, transportation, wealth, education, health, and access to credit.

The report highlights housing choice as a key factor in levels of opportunity and regional prosperity.

Due to a history of public policies in the region which have perpetuated the concentration of poverty and low income housing, the eastern portion of the City of Richmond and areas of eastern Henrico and north-central Chesterfield have remained areas of lowest opportunity within the region. “The report validates and quantifies what a lot of us already knew,” said Brian Koziol, Director of Research with HOME.

Brian explained that issues in transportation connectivity within our region are highly paradoxical.

For instance, after Richmond’s industrial structure shifted, warehouses and factories that once employed city residents were abandoned, and those who once staffed them were isolated within the city, where affordable housing options were confined. Meanwhile, more businesses located in the suburbs, where opportunity flourished but where the jobs created were scarcely or not served by public transportation. “We didn’t resolve this and now we’re trying to play catch up,” Koziol explained. The jobs that have been created within the inner city area, which are served by public transit, have been skewed toward law, finance, and other vocations requiring different types of skillsets. Many of the warehouses and factories which once employed Richmond’s workforce have been transformed into industrial lofts that are not affordable for a majority of the city’s residents.

Another puzzling paradox is that the very limited public transportation routes that extend into the counties surrounding Richmond are primarily express lines, serving commuters coming into the city for employment opportunities, as opposed to those traveling to the suburbs for jobs. “Bus routes don’t go out to all the surrounding counties,” Koziol said. “All Chesterfield stops are express routes and all in Henrico stop at 7p.m.; so if someone were to get off work after 7p.m., they would be stranded.”

Access to Mainstream Credit

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Stable Neighborhoods

Housing

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Quality Schools

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Access to Healthcare

(The figure to the left is from HOME’s report, “Where You Live Makes All the Difference;” illustrating housing as the centerpiece of opportunity and adequate transportation as a vital piece in the equation.)

Adequate Transportation

Job Opportunities

Ironically, a much higher proportion of commuters within the reach of public transit spend 45 minutes more commuting to work than those who commute in areas with few to no public transit stops. This is due to the absence of dedicated lanes; waiting times; and having to make multiple connections.

The report concluded that “The longest commute times are incurred among the lowest paid individuals living in the poorest neighborhoods.”

Another enigma regarding transportation in Richmond is the history behind its former public trolley system. In the days when the trolley connected the City of Richmond to outlying districts, people with the means (who happened to be primarily whites at the time) began moving outside the city, which caused a higher level of segregation. “Public transit is, in a way, something that helped cause segregation, but now it could be a large part of the solution,” Koziol remarked.

The report concludes with a few broad policy recommendations, including “Where you live should not limit your employment opportunities. Develop a regional transportation policy that helps to effectively connect workers to jobs.”

“We’re seeing a demographic shift with younger and older people moving back into the city and if we don’t do anything —like we didn’t in response to the industrial shift—we’re going to fall behind,” Koziol said. He added that the current circumstances under which the city is supporting most affordable housing do not exemplify a sustainable model. “We always talk about jobs and transportation, but we never talk about housing and transportation,” he added.

“What good is it to build affordable housing, if it isn’t linked to transportation?”

Housing, jobs, education, healthcare access and adequate transportation are cited as interrelated key factors in determining the level of opportunity for the region’s citizens—and ultimately the level to which the region will grow and prosper. Cooperation among the region’s jurisdictions to develop policies that will foster high levels of opportunity is vital to connecting the dots.

THE GREEN SERIES “Greening” the Home— Use This, Not That

By Guest Columnist, REALTOR® Tim Dunkum

In the style of

the popular “Use This, Not That” book series, this article provides a list of household items that seem to have a clear “green” alternative, which will yield a lower overall cost for the product and lower energy use by the homeowner. For certain products, this article will also expand on why these differences are important and site specific examples of how they save resources.

A shocking fact: America wastes 5-10% of our annual Residential Electric needs on “phantom energy.” Also called the “energy vampire,” the standby mode on our appliances is causing us to use increasingly more power when a device is not in use than ever before.

The average family is spending $100-200 per year on phantom energy. Anytime the wicked black box (with two fangs) is plugged into a live receptacle, it is constantly draining a little power.

Take a quick tour of your house and notice how many items that are plugged in have an indicator light or transformer box that stays warm even when its appliance is powered off. The average home is climbing toward 40 of these devices.

The three main ways to combat this issue: Use a power strip that can be turned off when items are not in use (there are smart strips that make this hands-free); use a switchable outlet to plug your appliance into and simply turn the switch off when not in use; and the third way is to purchase only devices that have the Energy Star label on them, which guarantees they have the lowest possible power use of all similar products when in standby mode.

The following household products are recommended for “green” substitutions:

LCD Display Televisions—YES Plasma Display Televisions—NO Plasma televisions are known for their excellent picture quality and impressively sized displays. What the manufacturers failed to advertise was what an energy hog they are. Using over 400 watts for a 50” TV, the plasma’s energy consumption is over two times greater than its LCD TV counterparts. The energy use is so significant it has prompted the European Union to create legislation banning the plasma display. A similar legislative piece is in the works in California. Now that the picture quality and price have evened out, it makes much more sense to buy an LCD TV, rather than one with plasma technology.

Laptops and Notebooks—YES Desktop Computers—NO Desktop computers are also silent energy monsters. They are one of the most continuously running appliances Americans own. Understandably, that is not entirely the consumers’ fault. Lengthy startup times are inconvenient, as well as the need for updates to occur during overnight hours when the computer must remain on. Laptops and notebooks are so much more efficient; they only use about 20% of the energy of a typical desktop. With their increased capabilities, memory storage, and portability, laptops have become the better answer for home and on-the-go computing needs.

Programmable Thermostat—YES Non-programmable Thermostat—NO Our home heating and cooling systems (HVAC) gobble 50-70% of our home’s energy costs. Installing a $115 programmable thermostat is an easy, cost-efficient step that can greatly reduce our HVAC costs while not changing our comfort level in the home. By programming the temperature to adjust a few degrees while we sleep and when away at work, the average home can save $180 annually with one simple change.

Typical Items Around the Home: USE THIS NOT THAT Recycle bins Trash cans- (for garbage only) Timer switches on exhaust Fans Standard switches on exhaust fans Light timers/motion sensors Standard light switch WaterSense® commodes w/dual flush 3+ gallon per flush commodes Small extra fridge or compact freezer Old fridge in garage LED light bulbs Incandescent or CFL light bulbs Low-VOC and No-VOC paints Typical VOC-heavy paint Homemade natural laundary soap Large plastic bottle of detergent

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A shocking fact: America wastes 5-10% of our annual residential electricity needs on phantom energy. Also called “the energy vampire,” the standby mode on our appliances is causing us to use increasingly more power when a device is not on than ever before. The average family is spending $100-$200 per year on phantom energy.

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Items Around the Kitchen: USE THIS NOT THAT Reusable containers or bags Plastic sandwich/snack bags Rags/washcloths Paper towels- (occasional use okay) Reusable shopping bags Plastic/paper shopping bags Microwave/toaster oven Full-size oven/range (except lg. meals) Natural cleaners Chemical soaps and cleaners Reusable BPA-free bottles Plastic disposable water bottles Energy Star® appliances Old, faulty, noncertified appliances “Greening” the home does not have to be done overnight, or all at once. Many families have had success with adopting one new action/product use per month. Once it has been in regular use for 30 days or so, it will become habit.

That is twelve “green” steps each year.