Charting Maine’s Future

Two recent empirical studies have analyzed the relationships between neighborhood’s “walkability” and local real estate values, and the evidence suggests that real estate locations within walking distance of important shops and services is more likely to increase in value.

Both studies used Walk Score to measure a particular location’s walkability. Walk Score is a Google Maps-based application that calculates the number of shops and services that are located within a mile (walking distance) of a particular location. If an address has a lot of supermarkets, drug stores, movie theaters, libraries, and other services close by, it gets a higher walk score; if there aren’t any services located within a mile, the Walk Score is zero.

It’s not perfect, but its scores do confirm most peoples’ perceptions of whether or not an area is “walkable.” My childhood home in rural Steep Falls, where my family never, ever walked to run daily errands, scored a zero; but Main Street in Waterville and downtown Rockland both score a 98 out of 100, while small-town Main Streets in Houlton, Caribou, Bethel, and Norway all score as “very walkable” in Walk Score’s calculations.

In some neighborhoods, real estate agents have begun promoting high “walk scores” as a selling point. Which leads to the central question of these studies: do higher “walk scores” really translate into higher real estate values?

The answer seems to be “yes.” In the “Walking the Walk” report, released by CEOs for Cities, researcher Joe Cortwright analyzed 15 housing markets and found a statistically significant relationship between home values and neighborhood walk scores. Here’s a summary from the CEOs for Cities blog:

An example of the effect of walkability on housing values cited in the study is found in Charlotte, NC. In a neighborhood with a typical Walk Score of 54 called Ashley Park, the median home price was $280,000. In a neighborhood with an above average Walk Score – 71 – called Wilmore, an otherwise similar home would be valued at $314,000. Controlling for all other factors including size, number of bedrooms and bathrooms, age, neighborhood income levels, distance from the Central Business District and access to jobs, “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,” Cortright said.

A similar study by researchers at the University of Arizona used slightly different methods to arrive at a similar conclusion.

Gary Pivo and Jeffrey Fisher studied all types of properties, including retail, office, and industrial properties, and concluded that “a 10 point increase in walkability [on the Walk Score scale] increases property values by 5 to 8 percent, depending on property type.” You can read their working paper here.

Of course, these findings have big implications for municipal leaders, economic development professionals, and transportation planners. By investing in sidewalks and revising zoning codes to encourage pedestrian-friendly development, officials can boost property tax revenues and generate new wealth for homeowners and commercial landlords in their communities.

Download the full “Walking the Walk” report here.