Light Rail Transit System Creates Opportunities for a Construction Company
Canada’s light rail transit system is undergoing a renaissance. Massive projects like Winnipeg’s Southwest Rapid Transit Corridor, the Edmonton LRT, the Eglinton Crosstown LRT, and many more are laying down the tracks for a better-connected future. For a construction company, however, these developments not only have a huge impact on transportation, but also have significant effects on land use and real estate.
LRT System and Land Value
During the 19th century, transit played a major role in urban expansion. Easy access to rail transportation drove development. Add elements like attractive sites, favorable zoning, and high demand, and it’s safe to say that light rail transit is instrumental in urban expansion.
Historically, lands located near light rail transit systems shoot up in value. And it makes sense, because the presence of a light rail transit system in an area improves quality of life in many ways, such as:
Due to the high volume of foot traffic that urban transit systems receive every day, commercial real estate in surrounding areas are some of the hottest across the country. Commercial investors and firms prefer locations with easy access to transportation to be able to reach more consumers.
Other than being financial assets, locations near a light rail transit system also stimulate social development. Urban rail transit reduces stress, time, and cost for commuters. It also creates safer and more walkable neighbourhoods and cleaner air. People also flock into areas with lots of commercial complexes, creating a positive cycle that contributes to increased land value.
In short, light rail transit systems spell good news for many aspects of a community. However, it also presents some downsides, especially for people looking for homes.
Light Rail Transit and Rentals
Canada is currently experiencing a housing crisis. Several trends have resulted to this issue. One them is the changing mind set of today’s generation towards real estate. Instead of buying their own houses, many people prefer to lease long term. Apartments and row housing tend to be more affordable than houses, and offer lots of amenities and advantages that may not be available to homeowners.
While demand for rentals is surging, the supply is seriously lagging behind. Light rail transit systems can compound this problem.
Light rail transit systems require large spaces.
Huge swaths of land are required to build a successful light rail transit system. In the process, residential properties may have to be demolished to make way for the project.
Light rail transit systems cause property values to shoot up.
Rising land values does have a disadvantage. It can cause houses to become so expensive as to render it out of reach for the average renter or buyer.
Clearly, a solution that can simultaneously address these issues is necessary. Purpose-built rentals offer a fantastic solution to both the rental property shortage and the complications that arise from light rail transit systems. Purpose-built rentals are apartments or row housing in clusters of three or more units intended for long-term leasing. These structures will open up more residential opportunities for many people, and are also well-suited to fit the special requirements that surround a light rail transit system.