Earth, Wind & Power Blogazine: The Walkable Communities & Home Value Correlation

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Though housing values are still slow to rebound from the collapse of the real estate market, a new analysis from CEOs for Cities reveals that homes in more walkable neighborhoods are worth more than similar homes in less-walkable neighborhoods, pointing to a bright spot in the residential real estate market. The study looked at 90,000 homes in 15 different markets in the US, mashing up home sales data with “walkability” scores from WalkScore.com. “It’s clear that consumers assign a tangible value to the convenience factor of living in more walkable places with access to a variety of destinations.”

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.

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.

As these walkable cities become more densely populated, cities with lower walkability scores will strive to reach them. Cities will revert to being built around people, as opposed to being tailored around cars. Public transportation infrastructure will be built and sidewalk space increased. Highways and other large roadways will be recognized as blockades, fencing in walkable areas. This correlation between walkability and home value just happens to be a function of environmentally progressive thought.

"The main reason to love walkable neighborhoods is their human energy: they're fun, lively, memorable... not boring," says Alan Durning of the Sightline Institute. "They're the kinds of places where you might bump into a long-lost friend; stumble across creative inspiration, whether for a song or a new business; or meet the love of your life...That's why they're becoming among the most sought-after addresses around."

“Homes in walkable neighborhoods continue to be a good investment, and are one of the simplest and most effective solutions to fight climate change, improve our health, and strengthen our communities,” said Walk Score founder Mike Mathieu. "Our vision is for every property listing to include a Walk Score - Beds: 3 Baths: 2 Walk Score: 84."

Source: CEOs for Cities

For more earth-friendly living tips, visit RTM's Earth Tones section.