Transport Hubs and the Real Estate Market

We have seen how Link Analysis works in the World Wide Web setting, but it is equally relevant when looking at other networks. A New York Times article about the New Jersey Transit system and housing developments draws a connection is drawn between transportation hubs and the effect on the real estate markets in those areas.

We know that, once we ask a query on the web, each page is assigned two scores. One is called its hub score and the other its authority score. We can replace web pages with nodes to broaden the theory. A good hub node is one that points to many good authorities; a good authority node is one that is pointed to by many good hub nodes.

This article tells how developers seek to capitalize on this interest in transit hubs, reporting that “real estate sales are consistently strongest in towns along New Jersey’s main commuter corridors.” Home shoppers are the catalysts to this phenomenon and in our terminology could be seen as the hub and the NJ Transit stop could be the authority. Therefore the stop with the highest authority logically will affect the price of the houses in that area.

“Towns along the rail lines with New York City commutes of less than 50 minutes saw real estate values increase by 3.6 percent from 2010 to 2011, as compared with rural New Jersey, the weakest sector, which saw an 8.7 percent drop in home values” according to The latest survey on home prices conducted by the Otteau Valuation Group.

 

http://www.nytimes.com/2012/03/25/realestate/new-jersey-in-the-region-high-marks-for-transit-hubs.html?_r=0

 

YO

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1 thought on “Transport Hubs and the Real Estate Market”

  1. In the case of websites, a site with a high authority score has a high score because something about it causes other sites to link to it. It is probably the best site of its type.

    But train stations don’t have nearly the same variance in quality as websites. Most home shoppers don’t consider the quality of the nearby train station when making their decision. Things they probably do consider are the quality of schools.

    If it were possible to calculate, I would be curious in seeing the “authority score” of schools or grocery stores. I bet they have a similar or greater draw than train stations. I think people make the large scale decision of what town to live in by school quality, and then in the town use train station proximity to narrow it down even further.

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