By Selma Lewis, Research Economist
- In the report, “Walking the Walk: How Walkability Raises Housing Values in U.S. Cities” by Joseph Cortright, the authors 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 were directly linked to higher home values.
- In the typical metropolitan areas studied, the home price premium commanded for neighborhoods with above average Walk Scores compared to those with average Walk Scores ranged from about $4,000 to $34,000, depending on the metro area.
- 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). 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 $700 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.
- Walkability is defined by the Walk Score algorithm which works by calculating the closest amenities – restaurants, coffee shops, schools, parks, stores, libraries, etc. – to any U.S. address. The algorithm then assigns a “Walk Score” from 0-100, with 100 being the most walkable and 0 being totally car-dependent. Walk Scores of 70+ indicate neighborhoods where it’s possible to get by without a car.
- Walk Score Median refers to the median of the metropolitan area. 75th percentile refers to the walk score that 75 percent of all households in the metropolitan area fall below and that 25 percent of all houses exceed and is considered the “above average” Walk Score. Estimated gain refers to the home value gain from living in areas where 75 percent of houses have above average scores.
- In response to the study, local policymakers of the city of El Paso, which was not included in the study, said the results show that the push to use smart-growth principles in all neighborhood development makes sense. The idea is also that the new development adds value to the municipalities’ tax base.
- Those not enthusiastic about the idea often argue that the building type required is not always feasible in a city like El Paso, where densities are much lower than those of up to 27,500 people per square mile in New York City. El Paso’s population density is 2,500 per square mile. Still, more could be done even in lower density areas to secure walkable communities. Providing appropriate infrastructure to pedestrians, such as sidewalks on major streets, could be a step forward.
- Source: “Walking the Walk: How Walkability Raises Housing Values in U.S. Cities” by Joseph Cortright
Copyright National Association of REALTORS®, Reprinted with permission.
For a look at your local Walk Score try www.walkscore.com. Athens, GA “WalkScore” is below!
http://www.AthensGaHomesForSale.com
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