Jersey City politicians want to add a quarter-mile extension to the Hudson-Bergen Light Rail along the Hackensack River, which rests on the west side of Jersey City. Hudson County Executive Tom DeGise says the quarter-mile stretch could as much as double property values along the river by increasing public transit access, but the real barrier to growth in the area may be Jersey City’s own zoning restrictions.
The light rail, which opened in 2000, connects the Hudson River Valley to New Jersey Transit Rail hubs and PATH trains, which transport riders to New York City. Passengers in Jersey City and Hoboken take nearly 14 million trips on the line about 43 million miles each year, according to New Jersey Transit.
U.S. Senator Bob Menendez (D-NJ) joined Weehawken Mayor Richard Turner, Hoboken Mayor Dawn Zimmer and Hudson County Executive DeGise on a 21-mile trip along the light rail last Wednesday. During the trip, the officials held a press event at the Hoboken Terminal light rail stop where they spoke in support of a new quarter-mile addition off the end of the West Side Avenue light rail line. To fund the project, they hope to tap into $2 billion in matching funds that will soon become available to states from the Federal Transit Administration.
During the trip, DeGise told the regional administrator of the Federal Transit Administration, Marilyn Shazor, that the additional quarter mile of light rail could double property values along the Hackensack River, according to The Hudson Reporter newspaper.
“The benefits that Jersey City has seen are already in the billions, so it seems like a pretty smart investment,” said Steven Higashide, a senior program analyst for Transit Center, a transit think tank. Higashide said the extension would be a great asset to the city’s “Bayfront Revitalization” plan, which is currently taking place near the end of the planned light rail extension.
However, a spokesperson for DeGise, said Tuesday that much of the growth DeGise expects would come from Jersey City zoning rules that allow for more “dense” buildings near public transit, which are currently prevented in the area. According to the spokesperson, the city gives certain privileges to developments that are close to public transit.
“The underlying municipal zoning is written as such so that you could double the density in that area,” the spokesperson said. “If you had the quarter mile [area] that they are discussing, the area would be able to go from 4100 to 8200 [per square foot].”
There is evidence that the light rail has aided in Jersey City’s growth since its construction in 2000. Jersey City has seen its home values increase 0.3 percent per year over the last ten years and 2.2 percent per year over the last five years, according to statistics provided by Zillow.com. This puts its rate of growth ahead of surrounding communities without light rail systems, such as Fort Lee and Secaucus, which have shrunk by -0.8 percent and -1.1 percent, respectively. During this period, housing values in the United States grew at -0.1 percent per year.
“In general, I would say since the inception of the light rail it has brought a range of buyers to Jersey City,” said Achim Borkeloh, a realtor in the Jersey City area. “It made it much easier to go to the PATH to get to New York.”
Borkeloh said the light rail has two main sources of value – access to the PATH and access to other areas of the Hudson Valley. He says in order to reduce the number of cars in Jersey City, the city does not require large buildings to provide adequate parking. This incentivizes passengers to use the light rail and increases property values near light rail stations.
New Jersey Transit estimates that the new quarter-mile stretch would carry 12,370 riders each day for an estimated 24,740 daily trips, but some riders are skeptical the light rail extension would offer Jersey City residents much advantage over existing public transit options, such as buses.
“I only take it from here,” said Michelle McAdam, a Jersey City resident who rides the light rail to work from the West Side Avenue station. “A lot of people only take it five stops. Most people take it to Newport and transfer to the PATH.”
Extending the light rail in northwest Jersey City along the Hackensack River would likely give property values in that area a boost thanks to the city’s own zoning restrictions, but it appears that lifting the zoning restrictions in the area would have a similar effect without the added investment.