The very long-term investment in property near transit lines is a solid strategy; however, the short-term gains are not likely. Let me give you a little history on this: The Davis Square and Porter Square subway stops were under construction for a tediously long time, just like other MBTA projects. It opened in the mid-1980s. Prices flew up in the boom that ended around 1989, when there was a hard bubble break. Prices did not boom again until the next inflationary bubble. That was the mid to late 1990s. Since then, the Davis/Porter area has been more expensive than similarly built properties farther from the Red Line. However, it took about 10 years after completion of the stops to really see the property price inflation in a steady way. People who bought in the late 1970s in anticipation of the Red Line had to wait a long time. Sound familiar?
Iâ€™ve been answering questions about the anticipated Green Line extension for a long time. Attached is a blog entry from 2009. My prediction then was not too far off.
Another thing is that the Red Line is currently the only subway line in town, serving a small percentage of the city of Somerville. The Green line will add to the pool of available housing that is near a subway line. That makes property on all the subway lines not be as unique (and valuable) as when there was only the Red Line and the properties near it. (Demand gets diluted when there is more supply.) This could be a factor by 2020 or so.
My general advice on purchasing is to buy what you will love to live in for the next 10 years. If you see appreciation before then, you are lucky. If you don't, you still have a great place to live. If the passing trains are something you won't like in the future, you may want to look for a nicely renovated space a short walk from a proposed Green Line stop.