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Congestion Pricing Could Give Lift to Some Home Values | Mansion Global

Congestion pricing won’t make only driving in New York City more expensive. Research suggests it also could boost residential real-estate prices inside the pricing zone.

Last month, in a move intended to lighten traffic and raise revenue for the city’s subways, the New York State government agreed to levy congestion fees on cars navigating Manhattan south of 60th Street.

That’s unwelcome news for commuters accustomed to driving into the city for work, but it is potentially a boon to homeowners within the congestion zone, said Cheng Keat Tang, a postdoctoral researcher at the University of Southern California.

In a working paper published last year, Dr. Tang looked at the impact of London’s congestion pricing plan (which went into effect in 2003) on traffic and residential real-estate prices. He analyzed 79,322 home sales in the pricing zone and 74,835 sales outside it that occurred between the first quarter of 2000 and the fourth quarter of 2015. He found that implementation of congestion pricing raised home values within the zone by 3%, which he said translates to “a windfall of more than £10 billion [$13 billion] for homeowners.”

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Congestion Pricing Could Give Lift to Some Home Values – Mansion Global.

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