TCPalm is out with an article about a study released on property value changes due to All Aboard Florida.
It finds that values are largely unchanged except for in small homes.
Small homes near the railroad tracks on average have sold for 16 percent less since All Aboard Florida announced it would run passenger trains through the Treasure Coast but not build a station here, according to a study commissioned by Martin County and released Monday.
Yet values in St Lucie Village which is a small town along the FEC tracks have risen.
Values in St. Lucie Village saw a 2 percent rise, from about $55.8 million in 2014 to an estimated $56.9 million in 2015.
But values are up 4% across much of the Treasure Coast in articles released recently.
But where do values come from? Are they concrete? No, values are in the heads of individuals. The doctrine of the subjective theory of value states:
value is determined by the importance an acting individual places on a good…
Values are what people are willing to pay for something. Because an owner values their property at X does not mean that buyers will pay X for your property. That is why they make an offer which represents what they value the property at.
Do property owners have recourse for actions that hurt their property values? No. As Rothbard wrote:
Everyone has the right to have the physical integrity of his property inviolate; no one has the right to protect the value of his property, for that value is purely the reflection of what people are willing to pay for it. That willingness solely depends on how they decide to use their money. No one can have a right to someone else’s money, unless that other person had previously contracted to transfer it to him.
Values are what people think the prices of a good should be and you do not own your property value. If you think so try telling that to your real estate agent or the buyer of your property.
Instead people who voluntarily bought property next to the railroad are realizing in hindsight a consequence of their choice and the error of their assumption that train traffic would never increase. The cries should fall on deaf ears like the complaints of a property owner that moves next door to an airport and complains of increased plane traffic.