Does Walkability Raise Property Values?

So, I am a local Realtor and resident of Southwest Minneapolis. And lately, the question that I am getting a lot from would be buyers is, "How is the walkability?" referring to prospective homes listed for sale in my neighborhood. It got me to thinking: Is this a trend, and does walkability raise property values? I know that one of the main drivers for me and my wife when we bought our home was that we would be just 4 short blocks to the Starbucks located at 54th Street and Lyndale Avenue and all the other convenient businesses like Walgreens, Kowalski's, Prima and of course - the best of all - Beek's Pizza.  (I dont ever walk there - but it is really nice to know that I can get a really good pizza in ten minutes when I want one.) My wife likes the Brow Studio - but I am not getting into that one.

But - there is some merit to this theory. If you’re able to walk instead of drive to the store for a gallon of milk, you and your neighborhood home values may benefit from the exercise. A 2009 study sponsored by CEOs for Cities, a national consortium of civic and business leaders, found that homes in neighborhoods with good walkability are more valuable than similar homes in neighborhoods where residents have to drive to get to amenities. 

The study concludes that walkability does in fact, raise home values. Walkability adds anywhere from $4,000 to $34,000 to home values. The bigger, more urban the city (think San Francisco or Chicago), the bigger the boost in home prices walkability adds. Neighborhoods in cities with less dense populations have the smallest boost in home prices.

I have been so excited to see intersections around Southwest Minneapolis take on new life in the 8 years I have lived here.  Think about 46th Street and Grand Avenue South. When I first bought my home - that intersection did not have much to offer.  Today - Patisserie 46, Cafe Ena and Kings Wine Bar make that intersection a destination...and not just for residents of the neighborhood, but for people coming into town from the Burbs. (By the way - the Almond Croissant at Patisserie 46 will change your life. Just go there and get one.)  

It is only logical that home values would increase in that part of Kingfield. And, if you look at average homes sales within a 4 block radius of that intersection since those establishments opened, you will see homes selling for a higher average price point, and in a shorter period of time than those properties further away.

Walkability: The closer, the better

The CEOs for Cities study also looked at home prices in relation to a neighborhood’s “Walk Score,” which measures how close the homes were to 13 amenities including restaurants, coffee shops, schools, parks, stores, and libraries. Homes within a quarter mile to one mile of the 13 amenities earned the highest walk scores and had the highest values compared with similar homes with lower walk scores.

The authors speculate that walking also has important social benefits—having a lot of people walking around signals that an area is safe, convenient, lively, and interesting.

Home buyers may also be putting a value on the time and money they’ll save by having nearby amenities, even if they drive the three blocks to have dinner at that nearby café, the authors say. It’s also possible that the serendipity of having a café nearby just adds value to your home. Maybe that $34,000 is based on the value of knowing that when you don’t feel like cooking dinner, the chef down the street does.