"Walkable" Communities Said to Have Higher Property Values

Communities with walkable neighborhoods command higher home prices than similar properties where a car is required for getting around, according to a recent study of 15 major urban areas.

The study found that communities with similar homes and income levels commanded higher prices if they possessed more "walkable" destinations - including restaurants, shops, libraries, schools, parks, etc. - within a one mile radius than neighborhoods lacking those amenities. The study was released this month by CEOs for Cities, a national network of urban leaders focused on creating sustainable communities.

The findings run counter to much of the current common wisdom, that holds that Americans prefer to live in semirural suburbs, far removed from downtowns. Many upscale housing developments are no longer even built with sidewalks unless required to do so by local ordinance.

The study found that in 13 of 15 metropolitan areas surveyed, greater "walkability" led to significant increases in property values. Communities were assigned a score from 0-100 based on how many destinations/amenities are located within a short distance, typically one-quarter mile to one mile. Communities with scores over 70 were considered neighborhoods where it was possible to get by without a car.

Local amenities produce higher property values

The study found that each one-point increase in the Walk Score resulting in a $700-$3,000 gain in property values. As an example, it noted that a median-value home in the Wilmore neighborhood of Charlotte, N.C., with a walkability score of 71, was valued at $314,000, while a comparable home in the less walkable Ashley Park neighborhood, with a score of 54, was valued at $280,000.

The study adjusted for factors such as size, age, number of bedrooms and bathrooms, neighborhood income levels and distance from the central business district, among other factors.

"If you were to pick up that house in Ashley Park and place it in more walkable Wilmore, it would increase in value by $34,000, or 12 percent," said Carol Coletta, president and CEO of CEOs for Cities. "These findings are significant for policy makers," Coletta said. "They tell us that if urban leaders are intentional about developing and redeveloping their cities to make them more walkable, it will not only enhance the local tax base but will also contribute to individual wealth by increasing the value of what is, for most people, their biggest asset."

Las Vegas proves an exception

Not every community showed an increase in home value tied to walkability. Home values in Las Vegas, Nev. actually declined with an increase in nearby destinations, while Bakersfield, Calif. showed no correlation between the two.

The study also raises questions about the distinction between walkability and convenience, given that few people walk a mile to destinations such as shops or restaurants on a regular basis these days. Many people do enjoy the convenience of having frequently used amenities within a short drive, however.

Other cities included in the study, in addition to those named above, were Arlington, Va.; Austin, Tex.; Chicago, Ill.; Dallas, Tex.; Fresno, Calif.; Jacksonville, Fla;; Phoenix, Ariz.; Sacramento, Calif.; San Francisco, Calif.; Seattle, Wash.; Stockton, Calif., and Tucson, Ariz.