As described in an earlier post, the ranking system at Walk Score measures walkability an address by using the number of conveniences located within a mile of an address, and creating a score ranging from 0 (car deserts) to 100 (walking heavens) on that address.
Reader response was mixed. An interesting idea, but what’s the point?
Here’s one: use it to measure increased home values
Economist Joe Cortright used Walk Score results to study the impact walkability has on home values in a paper titled “Walking the Walk“(PDF) commissioned by CEOs for Cities. The findings suggest that after correcting for other variables, homes in above-average walkability locations were worth thousands more when compared to homes with addresses rated as average.
Seems intuitive, doesn’t it?
Many home buyers looking within a city do so precisely because of a location’s convenience. They accept the higher “premium” to be in town. However, most people don’t consciously put a dollar value on that criteria. How would they? How much is it worth to live in a walkable neighborhood? Is it worth an extra 12%?
The findings in “Walking the Walk” strongly suggest those numbers.
The study finds that with each additional point scored on Walk Score it is worth anywhere from $700-$5000 in increased home value. In some cases higher walk-values translated into a $30-$40 increase in home value.
Consumers are obviously placing a tangible convenience-value on walkable neighborhoods. So, what is the use of Walk Score? It isn’t a perfect ratings system, but it can give consumers a tool to understand the value of one neighborhood over another.
For real estate agents, the scores can offer a niche market resource and a specialized advantage. For example, a real estate agent in Portland, OR has actually taken this type of market research one degree further. Kirsten Kaufman is now known as the Bike Realtor and she specializes in helping those who want to drive less find the most walkable & bikable neighborhood.
People want choices and they are willing to pay for it.
The most convenient neighborhoods to live in are often the ones that have transportation choices built into them through mixed-use development and infrastructure priorities that actively create walkability.
