Redfin's Sheharyar Bokhari, a researcher at the MIT Center for Real Estate, has developed a system for calculating the value of walkability in major metro markets. In Wednesday's Redfin Real Time blog, he reports:
In U.S. cities, homes within walking distance to jobs, schools, shopping, parks and other urban amenities are both highly desired and extremely rare. Fewer than 2 percent of active listings are considered a walker’s paradise (Walk Score of 90 and above). Yet 56 percent of millennials and 46 percent of boomers prefer walkable communities with a range of housing amidst local businesses and public services. And like everything rare and desirable, walkability comes at a premium; homes highly “walkable” to amenities, everything else being equal, are more expensive than comparable homes in less “walkable” areas.
To estimate how much walkability is worth when buying or selling a home, we looked at the sale prices and Walk Score ratings of more than one million homes sold between January 2014 and April 2016 across 14 major metro areas to determine the average price of one Walk Score point.
We found that one Walk Score point can increase the price of a home by an average of $3,250 or 0.9 percent.