Improving walkability increases home values, but only in already walkable neighborhoods

Wei Li & Kenneth Joh & Chanam Lee & Jun-Hyun Kim & Han Park & Ayoung Woo, "Assessing Benefits of Neighborhood Walkability to Single-Family Property Values: A Spatial Hedonic Study in Austin, Texas," Journal of Planning Education and Research 35 (2015): 4

The take-away: In investigating the relationship between neighborhood walkability and property values, this study finds that walkability only appears to increase property values in neighborhoods that are already walkable. Properties in neighborhoods that are car-dependent, on the other hand, can see relatively meager gains in value with the addition of sidewalks.

Abstract: This article investigates the impact of neighborhood walkability, measured by Street Smart Walk Score and sidewalk density, on property values by analyzing the 2010–2012 single-family home sale transactions in Austin, Texas. The Cliff-Ord spatial hedonic model (also known as the General Spatial Model, or SAC) is used to control for spatial autocorrelation effects. Results show that improving walkability through increased access to amenities in car-dependent neighborhoods does not appear to increase property values; adding sidewalks in these neighborhoods leads to a minimal increase in property values. Investments in neighborhood amenities and sidewalks will yield a greater home price increase in a walkable neighborhood than in a car-dependent neighborhood.

Full article (requires access)