Transcript: Real estate editor Maryann Haggerty and columnist Elizabeth Razzi

Real estate editor Maryann Haggerty and columnist Elizabeth Razzi respond to a question adapted from a recent online chat.

Q Arlington: Are there any hard numbers comparing the cost of otherwise comparable homes in the Washington area with and without easy access to Metro? I'm sure there's a cost premium for living close to a Metro station; I'm just wondering how big that premium is.

A Maryann Haggerty: This topic is a favorite among academics, who have done any number of studies in any number of cities about how transit affects property values. (I have one report here that analyzes the findings of 96 other reports.) Not surprisingly, the precise numbers vary -- otherwise, there might be no need for more studies.

In most cases, the researchers conclude that being within a quarter-mile of a transit station increases the value of a home by at least 10 percent. There's also a notable boost to values of office and retail property.

According to one report by the Urban Land Institute, the largest value increases come with rail systems in large metropolitan areas -- systems like Metro. But the increases are likely to be larger in dense urban areas than in less-dense suburban ones.

Elizabeth Razzi: A location close to a rail station or a convenient bus route can make your home worthy of consideration to more potential buyers. Even if it didn't fetch a higher price, you could have an easier time selling it. Also, I would think the premium would extend beyond a quarter-mile from a rail station. I know folks willing to walk up to a mile so they can avoid the hassle and expense of parking.

M.H.: And one other interesting study result: In January 2001, when the original 103-mile Metro system was completed, about $9.5 billion had been spent, and the system had generated between $10 and $15 billion in new land value.

The next Real Estate Live chat will be at 1 p.m. Friday.