Traffic and Trains

This evening, after the State of the Union Address, President Obama will outline his high-speed rail plan for America.

For those not too familiar, by definition, high-speed rail allows for trains to travel up to 125mph. Currently, most commuter trains in America are not quite up to that speed (see chart below, courtesy of progressivefix.com).

America's Clogged Arteries

As mentioned in yesterday's post, we're getting a bit too congested here in America. And, I don't mean stuffy noses. Gridlock on our nation's highways and roadways continues to worsen, even after expanding lanes and bailing out the Federal Highway Fund in 2008. The gas tax of 18.4 cents a gallon hasn't been raised since 1993.

There are some who dismiss the need for more rail service in America, even as gas prices continue to rise. To be sure, economically, we are in a very rough patch, but we were in similar situations in the early 1980s when Europe first began building its first high-speed rail lines. But the benefits of rail transportation far outweigh the continued expansion of highway lanes:

• Cost - Rail is very expensive--up front. The economic benefits, however, improve dramatically over the course of the decades when compared with highways. And not just with the rail lines themselves. Traffic costs the US billions a year in lost productivity.
  
• Convenience - A lot of that lost productivity could be recouped with rail. With rail, you can work on that presentation while commuting to work. You can have a relaxed, safe ride to work, as opposed to the stressful gridlock most people go through each morning.
  
• Conservation - A lack of cheap oil is just one component. Lost businesses due to highway expansion, lost tax revenue due to destroyed buildings, contaminated water due to run-off from asphalt parking lots. Rail makes sense not only economically, but ecologically, too.
  

Rail and Real Estate

Okay, you're no doubt saying. I get it: rail can be beneficial. But just what does this have to do with housing?

The answer: nearly everything. If you think of where people call a home, you automatically have to think about where people live their lives. Where they go to work, go to shop, where their children go to school.

Why are so many of our cities near waterways? Because most cities were founded hundreds, if not thousands of years ago and trade, defense, and transportation all occurred near the waterways. Transportation vastly affects how cities are planned and built.

Europe began ratcheting up its initial (non high-speed) rail system in the 1970s, the same decade that America began expanding its highway system. Housing in both countries now differs vastly. Transportation affects housing, which ultimately affects lifestyle.

Public demand for car-free transportation is growing. How cities are planned are affected by whether the city chooses rail or highway. As a real estate agent, you probably understand that people want convenience in their housing. This trend will only continue to grow.

On The Right Track?



Whatever your politics, sound transportation policy can benefit everyone, allowing for those who want a less stressful life to actually live it. The US population will reach approximately 390 million people within the next forty years. Adding 90 million more cars to our highways probably won't help the situation. A more sensible alternative is needed, before we're all railroaded.

dotloop.com