Walking the Walk

More than just a pleasant amenity, the walkability of cities translates
directly into increases in home values. Homes located in more walkable
neighborhoods—those with a mix of common daily shopping and social
destinations within a short distance—command a price premium over
otherwise similar homes in less walkable areas. Houses with the
above-average levels of walkability command a premium of about $4,000 to
$34,000 over houses with just average levels of walkability in the
typical metropolitan areas studied.

This paper explores the connection between home values and walkability,
as measured by the Walk Score algorithm. Walk Score measures the number
of typical consumer destinations within walking distance of a house,
with scores ranging from 0 (car dependent) to 100 (most walkable). By
the Walk Score measure, walkability is a direct function of how many
destinations are located within a short distance (generally between
one-quarter mile and one mile of a home). Our measure of walkability
reflects the convenience and proximity of having shopping and cultural
activities close at hand, as well as the value households attach to
mixed-use neighborhoods.

Using an economic technique called hedonic regression, we estimate how
much market value homebuyers implicitly attach to houses with higher
Walk Scores. We looked at data for more than 90,000 recent home sales in
15 different markets around the nation. Our statistical approach
controlled for key characteristics of individual housing units (their
size, number of bedrooms and bathrooms, age and other factors), as well
as for the neighborhoods in which they were located (including the
neighborhood’s income level, proximity to the urban center and relative
accessibility to employment opportunities).

After controlling for all of these other factors that are known to
influence housing value, our study showed a positive correlation between
walkability and housing prices in 13 of the 15 housing markets we
studied. In the typical market, an additional one point increase in Walk
Score was associated with between a $700 and $3,000 increase in home
values. In one market (Las Vegas) there was a negative
correlation—housing prices decreased with higher Walk Scores, and in one
market (Bakersfield) there was no statistically significant correlation
between prices and walkability after controlling for other factors.

These results show that consumers and housing markets attach a positive
value to living within easy walking distance of shopping, services,
schools and parks. The property value premium for walkability seems to
be higher in more populous urban areas and those with extensive transit,
suggesting that the value gains associated with walkability are greatest
when people have real alternatives to living without an automobile.