A letter in Motor Trend reminded me to expect a lot more of this
if we ever get the Triangle Choo-Choo. Housing near rail stations is
popular when the train is convenient. John Hood extolled the convenience of rail
in Washington, D.C., last week. Because of the convenience and
popularity (and scarcity) housing near rail stations gets more
expensive and the supporters of the rail program start with the “I told
you so” chorus. They might even throw in a few “look how the market
responds” lines if they’re really clever.
The problem is that rail operations, even in Washington, D.C., require large subsidies. Metro‘s
fare and advertising revenue cover less than 8% of the system’s cost.
Fares increase with distance, so it costs less to travel a shorter
distance. The net result is that people who can afford housing near a
rail station or in a downtown area receive travel subsidies from the
government and those who can least afford it have longer commutes and
pay the full cost of gas in addition to their homes — until city
council helps pay for their housing.
