MTA cuts taking a toll on property values

September 10, 2010 09:30AM

The Metropolitan Transportation Authority’s latest budget cuts are already reducing property values and demand in areas along canceled bus routes and subway lines, according to the Wall Street Journal. Brokers report foiled deals directly linked to the elimination of mass transit lines, and data from backs up their stories, showing a sharp decline in sales this summer in neighborhoods like Kensington and Ditmas Park, where bus service was cut. Real estate has been less affected in neighborhoods dominated by commuters with cars and which have easy access to other subway routes, but areas that are in the midst of gentrification are now less attractive to buyers exchanging the length of their commute for cheaper prices. Now, those prices could go ever lower, brokers cautioned. “The best areas in Brooklyn have great transportation into the city — the most expensive neighborhood in Brooklyn is Brooklyn Heights — you can get just about anywhere in the city easily. You go out into where there is less transportation, the prices go down,” said Matthew Giordano of Massey Knakal. [WSJ]