What Walkability Means for Your Property Value

While not everyone is interested in living in a dense, urban area, shopping for homes in walkable communities is a growing trend among younger homebuyers. According to Slate.com, homes that are within walking distance of schools, shopping and other amenities sell for an average of 35 percent more than similar properties in a car-dependent neighborhood. Renters in walkable neighborhoods pay a 41 percent premium. 

While there is a direct correlation between higher property value and walkable areas, the issue is more complex than it seems at the surface level. Read on to get a more in-depth breakdown of what walkability means for your property value, the benefits of walkable neighborhoods and if looking for a home in a walkable area is right for your lifestyle. 

In most U.S. markets — but not all — walkability comes at a premium

While on-average walkability tends to correlate with higher rents and higher property values, it's not necessarily the case everywhere. In a report from Strongtowns.org, some U.S. cities still boast higher property values in car-dependent areas over more walkable zones. A few examples of this include Oklahoma City, OK; Tucson, AZ; Rochester, NY; Detroit-Warren-Dearborn, MI and Indianapolis-Carmel-Anderson, IN. But why would this be the case?

It's hard to say exactly without doing more in-depth research, but there are a few possibilities that we can consider. In some greater metropolitan areas, the percentage of car-dependent areas could simply far outweigh the presence of walkable zones. Indianapolis, for example, has an overall walk score of just 31 and a transit score of 25. If a city hasn't invested in more walkable infrastructure and is largely car-dependent already, it's not surprising that homes in the few walkable areas wouldn't always rake in the most cash.

On the other hand, the rarity of walkable real estate also contributes to its high premium. As younger prospective homebuyers continue to gravitate toward walkable communities, prices will remain high. 

Walkable neighborhoods have benefits beyond high home values 

So what other benefits are there to living in a walkable neighborhood? Beyond the obvious convenience, walkable neighborhoods are good for commerce as well. Some studies have found that businesses in areas with more foot traffic and accessible transit stops perform better economically. 

While you're likely going to be paying more on your mortgage or in rent, not having to rely on a car also reduces transportation costs for those who live in walkable areas. Plus, it can help reduce your individual carbon footprint and be better for the environment. On a personal level, adding more walking and less driving into your daily routine can be better for your health overall. 

Is it worth it?

You may be paying a higher premium on your home, but it's easy to see how many benefits there are to living in a walkable neighborhood. For many homebuyers, it's well worth the extra expense to have a shorter commute, a smaller carbon footprint and more physical activity in their day-to-day life. 

From an investment perspective, it can also seriously pay off in the long run. As more Americans are looking to become more environmentally conscious and rely less on cars, homes in walkable areas won't be going out of style any time soon. As demand for more walkability grows, cities will hopefully also continue to invest in more walkable infrastructure and encourage more development in walkable areas.