A 2015 survey conducted by the Urban Land Institute found half of adults view walkability as a top or high priority when considering where to live. This helps explain why real estate listing websites like Zillow and Redfin long ago began posting walkability rankings. The idea is to provide a measure of a neighborhood’s pedestrian-friendliness to serve as a proxy for places where residents can find high-demand amenities nearby.

Many consumers prize living in areas within a close walk of everyday amenities because of the added convenience, quality of life or other reasons. But what about the bottom line? Can you put a price on walkability and, if so, how much is it worth?

The relationship between walkability and housing has been a topic of interest for academic researchers and industry specialists for many years. To explore this connection, we examined academic research findings of whether walkability has a discernible effect on housing prices. By understanding this connection, we can gain insights into factors that drive housing market trends and make more informed decisions about residential investments.

What is walkability?

Walkability measures the ease and safety of walking within a community. Most sources agree on four key components:

1. Pedestrian infrastructure: sidewalks, crosswalks, pedestrian crossings and other features that make walking safe and accessible.
2. Amenities and services: access to shops, restaurants, parks and other destinations that make walking appealing and convenient.
3. Density and mixed-use development: Residential, commercial and recreational activities nearby, which encourages walking and reduces the need for cars.
4. Safety and security: a safe and secure environment for pedestrians, with minimal traffic and crime.

The most widely used walkability ranking is called Walk Score, which was developed by a group of Seattle entrepreneurs in 2007. The company, now owned by Redfin, rates areas from 0 to 100, with higher scores indicating greater walkability. The score is based on factors such as proximity to jobs, schools, shopping, parks and other urban amenities. The ratings also reflect the density of population and buildings; availability of public transportation; presence of sidewalks and bike lanes; road network and traffic volume; and car-ownership rates. Perhaps not surprisingly, research suggests the effect of walkability on housing prices is more pronounced in cities with high population density and mixed-use development. Among the top-rated walkable cities are San Francisco (Walk Score rating 89), New York (88) and Boston (86), according to Walk Score. The average of 130 cities ranked is 48. Tables 1a and 1b show the scores of selected U.S. cities.

Table 1a – Scores of U.S. Cities: Top 10 by Walkability

Source: Walk Score

Table 1b – Scores of U.S. Cities: Selected Other Cities

NA = Not available
Source: Walk Score

While walkability indicates the ease of getting around on foot, the ratings are often paired with other indices to provide a broader idea of ease of navigability. Walk Score also provides rankings for an area’s proximity to public transportation and bike friendliness. Transit Score evaluates the accessibility of public transportation by assessing the frequency and quality of buses, trains and subways. Bike Score considers factors such as bike lanes and bike-share programs; hills and terrain; road network and traffic volume; bike parking infrastructure; and bike shops and services.

Walk Score undoubtedly provides the most widely available rankings, but it isn’t the only organization providing such scores. For example, The U.S. Environmental Protection Agency’s (EPA) National Walkability Index ranks block groups by how walkable they are. The index is based on factors like street density, land use and proximity to transit. MIT researchers used artificial intelligence and machine learning to develop StreetScore, which used real-life images of streets to predict the safety of streetscapes. Now inactive, the index shows how researchers are using cutting-edge technology to creatively redefine walkability. Another U.S. organization, Smart Growth America, created the Pedestrian Danger Index to measure walking safety of neighborhoods, recognizing an area may not be “walkable” if it’s not safely walkable.

Understanding these scores can help urban planners, policymakers, and individuals assess the quality of life in their neighborhoods and cities.

Research review: walkability and housing prices

Industry and academic studies generally show a correlation between walkability rankings and housing prices, but this is not always the case.

In 2020, Walk Score’s owner, Redfin, reported a high correlation after it looked at the data on the sale of nearly 1 million homes in 18 major metro areas. It reported the average sales prices of homes in highly walkable neighborhoods was 23.5% more, roughly $77,668, than comparable homes in car-dependent areas.

Another study looked at data for 90,000 recent home sales in 15 housing markets and found that a higher Walk Score was on average associated with a higher home value, but the relationship wasn’t universal. For example, Las Vegas showed a negative correlation between Walk Score and housing prices, meaning higher walkability was associated with lower housing prices, according to the 2009 report from CEOs for Cities, a nonprofit group. In Bakersfield, Calif., there was no statistically significant correlation, even after accounting for other factors that influence housing values.

Limited impact

Boyle et al. (2014) re-examined the relationship between walkability and housing prices in a sample for single-family homes and condominiums in Miami and found that walkability does not have any effect on housing prices. These modifications included considering the contribution of area and local characteristics. They found that once local characteristics are controlled for, the statistical significance of the relationship between walkability and housing price vanishes.

Chernobai and Ma (2022) studied the relationship between walkability and single-family house prices in Orange County, Calif. The analysis revealed a more nuanced relationship, with walkability having a statistically significant impact on house prices when there is either no garage or one garage space available. However, this effect is nearly nonexistent for houses with two-car garage spaces, and it even appears to be negatively correlated for houses with three or more garage spaces. The authors attribute the pattern to the potential noise pollution caused by high traffic in areas with more garage spaces, as quantified by Soundscore, a rating of how loud a location is due to environmental noise. This explanation highlights the complex and multifaceted nature of the relationship between walkability, housing characteristics and property values.

Ethnicity and neighborhood characteristics

Dey et al. (2023) examined the relationship between walkability, buyer ethnicity and liquidity of houses in the Atlanta metro area and found that walkability alone is negatively associated with housing prices. The study also found that the mix of buyers’ ethnicity plays a role in the effectiveness of walkability in making a positive dent in neighborhood housing market. For example, walkability matters for Hispanic buyers if they find a house in a neighborhood with a larger share of Hispanic population. The same does not hold, for example, for Asian buyers.

Impact on commercial property values

Pivo and Fisher (2011) investigated the relationship between walkability and commercial property values in a sample of over 4,000 offices, apartments, retail and industrial properties between 2008-2011. They found a positive correlation between walkability and office, retail and apartment values but no correlation with industrial properties, most of which were warehouses. This may be because warehouses are often located in areas that are not designed for residential pedestrian traffic, and the suitability for walking is not a significant factor in their value. The findings suggest that investing in office, retail and apartment properties in walkable areas can lead to higher returns on investment.

Walkability only goes so far

Many real estate pros suggest buyers shouldn’t place too much emphasis on walkability rankings. Roger Valdez, director of the Center for Housing Economics, recently expressed skepticism that walkability translates to higher housing values in a Forbes story published in January. He noted that a condo near downtown Seattle, with a Walk Score of 98, appreciated $183,000 less in value over the past six years than a comparable home in Auburn, Wash., with a Walk Score of 33. Valdez wrote he wasn’t “trashing” Walk Score, “but, if we consider the choice made by the buyer of the condo back in 2018, to live in a very walkable neighborhood, it had better not have been because it was an investment.”

Overall, an area’s walkability can be a major draw in densely populated cities with mixed-use development. It’s a proxy for good stuff — restaurants, shops and community life. But the ratings are only one of a seemingly endless number of metrics that savvy investors can use in their formula to assess opportunities. Perhaps the best advice: look both ways before walking ahead.