The US rail system has a long history. The first subway in the United States opened in Boston in 1897, known as the Tremont Street Subway. It was built to reduce street-level congestion caused by horse-drawn trolleys and was an immediate success, serving as a model for other cities. New York City's subway system began in 1904 with the opening of the Interborough Rapid Transit Company (IRT) line. It quickly expanded to become one of the world's most extensive subway networks, offering a fast and reliable means of transportation across the city. Philadelphia followed with the Market Street Subway-Elevated Line, providing a critical link between different parts of the city and improving accessibility for residents.
In more recent decades, major US cities have developed rail systems to support people's movement. The Washington Metro began operation in 1976, featuring modern design and extensive use of underground tunnels. It was built to alleviate traffic congestion and connect various parts of the capital region. The Bay Area Rapid Transit (BART) system, launched in 1972, was designed to connect the San Francisco Bay Area's suburban regions with the city center, reflecting the growing trend of suburbanization.
More recently, cities like Seattle, Dallas, and Houston have introduced or expanded their rail systems. New York City's Second Avenue Subway, which opened in 2017, marked a significant expansion of the city's subway network, aimed at alleviating congestion on the east side of Manhattan. As of 2024, there are multiple rail systems under construction. See below for the comprehensive list.
Atlanta: Summerhill bus rapid transit line, 6 km, opening 2024
Chicago:
West Lake South Shore line commuter rail extension, 12 km, opening 2026
Northwest Indiana Double Track project, expanding the South Shore line’s commuter rail tracks along 54 km, opening 2024
Bay Area:
SMART regional rail phase 2 to Windsor, 5 km, opening 2024
VTA light rail Eastridge to BART Regional Connector (San Jose), 4 km, opening 2027
Dallas: Silver Line regional rail line, 51 km, opening 2024
Honolulu: Honolulu automated light metro phase 2, 16.5 km, opening 2031
Houston: 56 Airline/Montrose BOOST arterial rapid transit line, 3 km
Indianapolis: Purple Line bus rapid transit, 19 km, opening 2024
Kansas City:
Main Street streetcar extension to UMO-KC, 6 km, opening 2025
Riverfront streetcar extension, 2 km, opening 2025
Los Angeles:
D Line (Purple) metro extension, phase 1, 7.5 km, opening 2024
D Line (Purple) metro extension, phase 2, 5.5 km, opening 2025
D Line (Purple) metro extension, phase 3, 4 km, opening 2027
L Line (Gold) light rail phase 2B to Pomona, 17.5 km, opening 2025
L Line (Gold) light rail phase 2B to Montclair, 6 km, opening 2028
LAX Airport Connector automated light metro, 4 km, opening 2024
OC Streetcar Santa Ana/Garden Grove, 9 km, opening 2024
Crenshaw Line light rail phase 2, 4 km, opening 2024
Miami: South Dade TransitWay Corridor bus rapid transit (renovation of existing corridor), 32 km, opening 2024
Minneapolis:
Southwest Corridor/Green Line light rail extension, 29 km, opening 2026
Gateway Corridor Gold Line bus rapid transit, 24 km, opening 2025
B Line arterial rapid transit, opening 2024
Monterey: Monterey County commuter rail extension, 67 km, opening 2024
New York:
Lackawanna Cut-Off commuter rail (New Jersey Transit) phase 1, 15 km, opening 2026
Penn Station Access commuter rail (Metro North), 27 km, opening 2027
Portal North Bridge commuter rail (Amtrak/New Jersey Transit), 6 km, opening 2027
Orlando: SunRail regional rail phase 2 north, 19 km, opening 2024
Phoenix:
Northwest light rail phase 2, 3 km, opening 2024
South Central light rail corridor, 9 km, opening 2024
Seattle:
East Link Blue Line light rail, 29 km, opening 2024
Center City Connector streetcar, 2 km, opening 2025
Lynnwood Link light rail extension, 15 km, opening 2024
Federal Way Link light rail extension, 13 km, opening 2024
Downtown Redmond Link light rail extension, 7 km, opening 2024
Madison St RapidRide G bus rapid transit, 6 km, opening 2024
Swift Orange Line arterial rapid transit, 21 km, opening 2024
Washington DC: Purple Line light rail, 31 km, opening 2026
Why should we care? Properties located near subway stations often see a significant increase in value due to the convenience and accessibility offered by the transit system. This "proximity premium" reflects the desirability of easy access to reliable public transportation. The introduction or expansion of subway systems can lead to gentrification. As more affluent individuals and businesses move into areas with good subway access, property values and rents can rise, sometimes displacing lower-income residents. Subways can also drive commercial development, as businesses seek to capitalize on the increased foot traffic and accessibility. This can lead to higher property values in commercial districts and greater economic activity.
In particular, the announcement of a new rail system often leads to speculative investment in real estate near planned stations. Investors anticipate that property values will rise as the area becomes more desirable due to improved transportation options. New rail systems enhance the accessibility of neighborhoods, making them more attractive for both residential and commercial purposes. This increased desirability can lead to higher demand for properties, driving up prices. The construction of new rail systems often comes with additional infrastructure improvements, such as better roads, sidewalks, and public spaces. These enhancements can further increase property values by making the area more attractive and livable. New rail systems can attract businesses looking to capitalize on increased accessibility and foot traffic. The resulting economic activity can raise commercial property values and contribute to the overall growth of the area.
Q & A?
Jay Ha
Head of Urban Research
Doctoral student in Urban Planning at USC
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