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When Removing Roads increase real estate values

BrianPersaud

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Sep 27, 2007
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We have heard in the past that infrastructure improvements (i.e. adding rail and highways) increase real estate values...it`s not always a golden rule. In some cases, removing trains and highways can spur a real estate renaissance in a neighborhood because removing them eliminates a barrier or a border vacuum in the city.

Essentially, a highway is a massive single use entity that forms a border..a border that attracts blight to a neighborhood and depresses property values.

Why does a border create a single use entity and why is that no good for real estate investors?

The answer is simple: few uses = few purposes to visit the area = fewer users = fewer future buyers of the real estate in the area. In addition, When borders are added, you start to see increased crime in the area.


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