How walkability raises home values
A new analysis from CEOs for Cities reveals that homes in more walkable neighborhoods are worth more than similar homes in less-walkable neighborhoods. The report, “Walking the Walk: How Walkability Raises Housing Values in U.S. Cities” by Joseph Cortright, analyzed data from 94,000 real estate transactions in 15 major markets provided by ZipRealty and found that in 13 of the 15 markets, higher levels of walkability, as measured by Walk Score, were directly linked to higher home values, according to CEOs for Cities's press release.
The study found that in the typical metropolitan area, a one-point increase in Walk Score was associated with an increase in value ranging from $500 to $3,000 depending on the market. The gains were larger in denser, urban areas like Chicago and San Francisco and smaller in less dense markets like Tucson and Fresno.
CEOs for Cities reported that statistically significant positive relationship between walkability and home values in 13 areas: Arlington, Virginia; Austin, Texas; Charlotte, North Carolina; Chicago, Illinois; Dallas, Texas; Fresno, California; Jacksonville, Florida; Phoenix, Arizona; Sacramento, California; San Francisco, California; Seattle, Washington; Stockton, California, and Tucson, Arizona. In one metro area, Las Vegas, walkability was correlated with lower housing values, and in Bakersfield, California, there was no statistically significant connection between walkability and housing values.
Another report released this month, "Effects Of Walkability On Property Values And Investment Returns," studied effects of walkability on the market value and annual investment returns of office, apartment, retail and industrial properties over the past decade.